Canada lost 9400 jobs in June and the jobless rate rose by 0.1 percentage points to 7.1% percent, as more people were searching for work. Employment increased by 72,000 annually or 0.4% (y/y), the lowest since February 2010. Employment fell in business, building and other support services as well as agriculture. At the same time, there were more people working in construction and other services.
U.S. Treasuries and German bunds advanced on Thursday, pushing their yields lower, as renewed concerns over European financial markets amid Portuguese banking woes boosted demand for safe-haven government securities. The benchmark 10-year yield declined as much as 6 basis points (bps) to a one-month low of 2.49%, while German 10-year yield slid 6 bps to a 14-month low of 1.17%. In contrast, Italian, Portuguese, and Spanish government bond extended their losses.
U.S. Treasury prices gained on Monday as investors took advantage of bargain-priced bonds after three sessions of selling. Further, the fact that U.S. Treasuries are relatively cheaper than other safe-haven government bonds also boosted oversea demand. The additional yield investors demand to hold U.S. notes over German 10-year bunds is currently at 137 basis points, the widest since 1999.
The US Department of Commerce has authorized exports of minimally processed crude oil, which could help reduce unprecedented levels of crude oil stocks in the U.S. and may narrow the 7 percent discount that U.S. oil trades to international (Brent) prices. In South Asia, weak economic growth has taken a toll on corporate and bank balance sheets. Tighter monetary and regulatory policies in the larger economies in East Asia have contributed to the slowdown in credit growth.|