Ira Jersey: Weaker June Jobs Report Drove Bull Steepening in U.S. Yield Curve

Interest-rate analyst Ira Jersey said the June U.S. nonfarm payrolls report came in weaker than expected, particularly because the prior reading was revised down. According to Jin10, Jersey said this triggered a bull steepening of the U.S. Treasury yield curve, which she described as reasonable because it implies a lower likelihood of near-term rate hikes. Jersey added that the TIPS curve should also see bull steepening, as real yields adjust to market expectations of a near-term slowdown in economic growth.