After jobs growth made a suggestion that the Federal Reserve could raise interest rates a lot sooner than expected, the U.S Treasury posted their steepest weekly jump in almost two years and the U.S currency made it to the biggest high against the yen in thirteen years.
After some blunt statements made by Europeans Central Bank president, Mario Dragi, followed by a wild week for government debts, the German Bounds made their worst weekly losses since 99 and the euro inception.
The situation with Greece and the euro zone partners and their inability to find a solution about the debt, weighed on sentiment in Europe. The U.S labor market report on the other hand was unexpectedly good, and that was enough for Wall Street to close in even gain and losses.
Thirty two thousand work places more than previously reported were created in the U.S, according to the revised payrolls for March and April, stated the Labor Department. Wilmer Stith, a portfolio manager at Wilmington Trust in Baltimore, says that jobs are being created massively, and that there is even a rise in the hourly pay. Some good things are happening there, he believes.
U.S benchmark Treasury debt yields got to their highest since October, five year yields made a six month high and the two years yields hit a four years peak.
German 10 year yields, which are the euro zone borrowing costs benchmark, got up for 0.85 percent, but they already lost three percent this week, causing them to achieve the biggest weekly loss since 99.
Greece delayed their rate payment to the IMF and a deputy minister from Syriza stated that perhaps snap elections are a way out for their Prime Minister Alexis Tsipras, even if it’s just a way to buy some time and relieve the pressure.
Brent oil hit seven weeks lows before paring losses. The surging dollar and OPEC’s decision not to cut output sent crude oil up and down on the price. After April the 16’s low of $60.94 a barrel, Brent ended on a higher note, now at $63.31 a barrel.