US bond yields up on data

Prices for US Treasury bonds were lower and yields rose after new data dashed hopes that the Federal Reserve might cut interest rates this year. May saw 157,000 new non-farm jobs created in the United States, while the Institute for Supply Management showed that US manufacturing activity grew in May. Most analysts agree that the trend toward higher bond yields will likely continue for the foreseeable future.

Two-year Treasury bonds yielded 4.98 percent on the session, up from Thursday’s yield of 4.92 percent. Ten-year paper was yielding 4.95 percent, higher than the 4.89 percent yield recorded Thursday afternoon, while yields on thirty-year issues were at 5.05 percent, up from 5.01 percent on Thursday. Yields were generally at their highest levels in nine months.

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