U.S. yields and the dollar fall as NYSE stock index futures extend gains after weaker-than-expected April jobs report raises hopes that the Federal Reserve will ease rates in 2024. FEDWATCH
At 12:35 GMT, the yield on the ten-year US Treasury bond US10YT=RR fell 9.8 basis points, to 4.473%, and touched its lowest since April 10, while the two-year
US2YT=RR plunges 13 basis points to move to 4.7472%.
They stood at 4.5527% and 4.8641% respectively before the publication of the employment figures.
Futures contracts suggest a clear rise in equity markets at the opening: the Dow Jones .DJI is expected to increase by 0.73%, while the Standard & Poor’s 500 .SPX takes 0.36% and the Nasdaq .IXIC 0.63%.
For its part, the dollar fell by 0.69% against the euro
EUR=, at 1.0799, while it lost 0.24% before the publication of the indicator.
Investors are now betting on 52 basis points of cumulative easing in 2024, compared to 41 basis points expected before the publication of the indicator.
(Written by Corentin Chappron, edited by Blandine Hénault)