Treasuries Down as Job Growth Misses Expectations

Market update: Treasuries face downward pressure as job growth falls short. The recent developments surrounding tariffs and weaker employment figures could lead to volatility in stock prices, especially for companies in affected sectors.

Date: 05-03-2025

AI Rating: 5

Treasuries Performance: Treasuries experienced a downturn as bond prices fell, causing yields, especially on the ten-year note, to rise by 5.5 basis points to 4.265 percent. The ongoing cashing in on recent bond market strength indicates a cautious sentiment among investors.

Tariff Implications: A notable factor is the delay in tariffs for automakers, confirmed by the White House following discussions with General Motors (GM), Ford Motor (F), and Stellantis (STLA). This exemption may stabilize stock prices for these automotive companies but could also lead to broader market impacts depending on trade relations and economic factors.

Employment Figures: The ADP report revealed a disappointing rise of only 77,000 jobs in February, significantly missing the expected growth of 140,000 jobs. This marks the lowest private sector job growth since last July, suggesting potential economic weakness. The sectors that saw job losses, including trade, transportation, health care, and education, indicate broader struggles in the economy, which could negatively affect market sentiment.

Given the current situation surrounding treasury yields, tariffs, and employment trends, stock prices may face volatility. The interplay between these factors will be crucial for investors to monitor in the upcoming trading sessions.

Stocks: GM F STLA