FX.co ★ Treasury Yields Fall After ADP Jobs Data

The yield on the US 10-year Treasury note decreased by nearly 6 basis points to 4.4% on Wednesday, reflecting growing concerns about the US economy's health, which dampened investor sentiment. The recent ADP report revealed that the private sector added only 37,000 jobs in May, marking the weakest monthly increase in almost two years and falling significantly short of market expectations. On Tuesday, the JOLTS report exceeded expectations, presenting a mixed outlook for the labor market ahead of the highly anticipated nonfarm payrolls report scheduled for release on Friday. Reacting to the ADP data, President Trump intensified calls for the Federal Reserve to cut interest rates, stating on Truth Social that "Powell must now LOWER THE RATE." Nevertheless, Federal Reserve officials have largely expressed a preference to keep rates unchanged, citing ongoing uncertainties related to trade policy and global economic conditions.