U.S. Treasury Rally Loses Momentum This Week, Says Caixin Macro Strategist

According to Thomas Mathews, Asia-Pacific manager at Caixin Macro, the U.S. Treasury bond rally that drove yields lower is expected to lose momentum this week, while German bunds may rise further. Mathews cited strengthening labor market dynamics as a key risk, stating recent momentum in employment suggests the June jobs report due later this week will show robust growth. He noted this increasingly signals that labor market conditions will not justify delaying monetary tightening, making it the largest risk facing U.S. Treasuries.
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