Two-Year Treasury Yield Hits 16-Year-High on Hot Jobs Data

The 2-year Treasury yield reached its highest level since the global financial crisis as investors anticipate the Federal Reserve will further tighten monetary policy following hot jobs data.
In June, private U.S. businesses created 497,000 jobs, the biggest increase since February 2022 and higher than the consensus estimate of 228,000, according to the ADP Research Institute’s National Employment Report (pdf).
The services sector accounted for most of the job creation, led by leisure and hospitality (232,000), trade and utilities (90,000), and education and health care (74,000). The goods-producing industry added 124,000 new positions, driven primarily by construction (97,000) and mining (69,000).
Despite the current administration announcing more significant investments in the sector, manufacturing continued the latest trend of job cuts, laying off 42,000 people. Various manufacturing measurements, such as the S&P Global Manufacturing Purchasing Managers’ Index (PMI), suggest the industry is in a recession….}