LIVE MARKETS-Long on US Treasuries after jobs data - UBS

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LONG ON US TREASURIES AFTER JOBS DATA - UBS

U.S. Treasury yields were modestly lower on Monday and Tuesday after rising on Friday after U.S. jobs data suggested growth was on track, potentially allowing the Fed to delay its interest rate cuts.

However, UBS strategists argue that these economic figures aren't as bullish for U.S. yields as market moves suggest.

“We stay long US 10y after US non-farm payrolls beat consensus, but job growth slowed to 124k/m in the first 5 months of 2025, compared to 180k/m in 2024,” they say.

“In recent weeks, we have been arguing that underpriced risks of a growth slowdown and relatively benign US CPI prints in May/June will support 10s,” they add.

Bond yields move inversely with prices.

“Household measures of inflation expectations have risen, but have not been reflected in wage demands.”

Financial markets are now on hold as investors await outcomes from ongoing U.S.-China trade talks.

(Stefano Rebaudo)

EARLIER ON LIVE MARKETS:

NOVO UP, UBS DOWN, FTSE NEAR PEAK CLICK HERE

BEFORE THE BELL: FUTURES POINT TO STEADY START CLICK HERE

INVESTORS ITCHING FOR PROGRESS IN US-CHINA TALKS CLICK HERE