Dollar Climbs as Q2 Employment Costs Rise 0.9% and 10-Year Yield Hits 4.730%
Updated
Updated · investinglive.com · Aug 1
Dollar Climbs as Q2 Employment Costs Rise 0.9% and 10-Year Yield Hits 4.730%
3 articles · Updated · investinglive.com · Aug 1
Summary
U.S. employment costs rose 0.9% in the second quarter for a second straight quarter, lifting the dollar and pushing Treasury yields to fresh session highs.
The data showed wages and benefits both advancing, reinforcing concern that labor-cost pressure could keep inflation sticky even as higher pay supports consumer spending.
Treasury yields climbed across the curve, with the 2-year at 4.303%, the 10-year at 4.730% and the 30-year at 5.260%, each up roughly 5.5 to 7.8 basis points.
The stronger dollar knocked EUR/USD toward 1.1471-1.1482 support, sent GBP/USD to a new low near its 100- and 200-day averages, and pushed USD/CHF toward 0.8119.
The move adds to a broader July rise in global bond yields and came before later Fed-related inflation doubts drove Treasury yields even higher.