LONDON (ShareCast) - US Treasuries fell back despite a report from payroll services firm ADP (Paris: FR0010340141 - news) which suggested
that the US economy may be shedding jobs faster than expected.
The report from ADP Employer Services showed US companies shed 473,000 jobs in June, against economists' expectations of a loss of around 400,000 jobs. In contrast, outplacement firm Challenger, Gray & Christmas said the number of job cuts announced in June fell 33% to 74,393 from May.
With investors piling back in equities, US Treasury prices ebbed, with thee yield on the 10-year note rising 3 basis points to 3.57%.
Government debt was out of favour on the other side of the Atlantic also.
In the UK gilt prices fell after the Bank of England paid an average of £112.44 for the 5% gilt due March 2018, 24 pence below the prevailing market price. The yield on the benchmark 10-year gilt fell 9 ticks to 3.77%.
On the mainland the German 10-year bund saw its price fall back, pushing the yield up to 3.41% versus 3.38% at the start of trade.
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