U.S. Treasury prices slumped, with the yields jumping after the release of labour data showed April employment and wage figures had outpaced market expectations. U.S. job growth accelerated in April while wage gains increased solidly, pointing to persisting strength in the labour market that could compel the Federal Reserve to keep interest rates higher for longer as it fights to bring inflation under control. Nonfarm payrolls rose by 253,000 jobs last month, but the economy created 149,000 fewer jobs in February and March than previously reported. Economists polled by Reuters had forecast payrolls would rise by 180,000. Wages grew by 0.5% against a 0.3% forecast from the economists. The U.S. Labor Department's closely watched employment report on Friday also showed the unemployment rate falling back to a 53-year low of 3.4%. Though data for February and March were revised sharply lower, the labour market is slowing only marginally. The Fed raised interest rate by 25 basis points last week and signaled a pause in its tightening cycle at the next few meetings. Back home, the benchmark bond yield dipped below 7% on Thursday, the first such instance in 13 months, but ended higher after profit booking and weak demand at the debt auction.
Many bond market participants recommended booking profits after the benchmark bond yield slid below 7% they did not expect a pickup in investor demand at current levels and some time before the country's central bank cuts rates. KEY INDICATORS: ** Brent crude futures contract was 0.3% lower at $75.05 per barrel after rising 3.9% in the previous session ** 10-year U.S. Treasury yield was at 3.4332% and two-year note yield at 3.9243% (Reporting by Dharamraj Dhutia; Editing by Dhanya Ann Thoppil)
