Positive U.S. jobs data dampens expectations of a Fed rate cut

Odaily Planet Daily News: U.S. short-term Treasury bond prices fell slightly after strong U.S. economic growth and employment data slightly weakened the market's belief that the Federal Reserve will cut interest rates twice before the end of the year. The U.S. economic growth rate in the second quarter was revised from 3% to 3.3%, exceeding economists' expectations. After the data was released, the yield on two- to five-year U.S. Treasury bonds rose by at least two basis points to the session high. At the same time, the number of initial jobless claims fell more than expected, which is a sign of a strong labor market. "The data continues to show that consumers are resilient despite tariff uncertainty," said Sudra Rajappa, head of U.S. interest rate strategy at Societe Generale. Rajappa said that the front end of the U.S. Treasury yield curve is feeling the "pull" of whether the Federal Reserve should cut interest rates in September. She added that although Fed Chairman Powell "tends to be more dovish, the data continues to suppress the need for rate cuts." (Golden Ten)