Treasuries dropped for a sixth straight week, the longest stretch of losses in four years, as U.S. payrolls swelled while the jobless rate rose, keeping alive bets the Federal Reserve will cut back on monetary stimulus.
Treasuries fell for a sixth consecutive week as higher-than-forecast employment growth supported speculation the Federal Reserve will taper its bond- buying program with economic growth exhibiting momentum.
U.S. stocks gained, sending the Standard & Poor’s 500 Index to the biggest two-day increase since January, and Treasuries fell after a better-than-estimated jobs report signaled the economy continues to expand. The dollar climbed and oil rose.
Yields on Fannie Mae and Freddie Mac mortgage bonds that guide U.S. home-loan rates approached a 14- month high as May employment data failed to allay concern that the Federal Reserve will pare back its unprecedented stimulus.
The Federal Reserve says it will keep buying bonds until the labor market has “improved substantially,” without defining the phrase. Officials may have adopted a threshold nevertheless, say two former Fed economists.