US 10-year yield rises to 8-week high as ECB signals end of monetary easing

The yield on the 10-year US Treasury note jumped to a 8-week high of 2.391% on Thursday, tracking the sharp rise in the German yields after the ECB minutes showed Draghi & Co. considered dropping a pledge to accelerate its bond buying program. 

The 10-year yield closed at 2.37%; its highest end of the day close since May 12. The 30-year yield jumped to 2.923%; its highest level since May 25. It was also the largest single day gain in two months. 

European bonds came under selling pressure following a dismal demand for French government paper. The selling gathered momentum after the release of the ECB minutes. Moreover, the sudden realization that the era of central banks is coming to an end, saw investors move out of the bonds, thus leading to a sharp rise in the yields. 

German 10-year bund yield ended the day at 0.568%; the highest level since January 2016. The sharp rally also marked a bullish break of the expanding sideways channel. 

Focus on US data

US economy is expected to add 180,000 jobs in June. The US has added 16.4 million jobs since 2010. The average monthly job gains have slowed down to 162K in 2017 from 250K in 2014.