According to a report from Jinshi Data, the prices of U.S. short-term government bonds fell slightly due to strong economic growth and employment data weakening the market's belief in the Federal Reserve's plan to cut interest rates twice before the end of the year. The second-quarter economic growth rate was revised from 3% to 3.3%, exceeding expectations.
After the data was released, the yields on 2 to 5-year U.S. government bonds rose by at least two basis points, reaching a daily high. The number of initial jobless claims fell more than expected, indicating a strong labor market. The head of U.S. interest rate strategy at Societe Generale stated that despite tariff uncertainties, consumers remain resilient.
She pointed out that the front end of the U.S. bond yield curve is feeling the 'pull' of whether the Federal Reserve should cut rates in September. Although Fed Chairman Powell tends towards a more dovish stance, the data continues to suppress the necessity for rate cuts.