NEW YORK — US Treasury yields advanced on Tuesday after data showed the labor market remained resilient with a rise in job openings for May, confirming the Federal Reserve’s stance of being patient on cutting interest rates.
At the same time, the US Senate narrowly passed President Donald Trump’s tax cut and spending bill, signing off on a massive package that supports many of his top domestic priorities into law, but adding $3.3 trillion to the national debt over a decade. The news saw some buying of Treasuries, pushing yields off their highs in the wake of the stronger-than-expected jobs data.
US job openings unexpectedly increased in May, rising 374,000 to 7.769 million by the last day of May, according to the Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday. Economists polled by Reuters had forecast 7.30 million vacancies.
According to Action Economics, the job openings number was the highest since November.
That JOLTS report tied in with comments from Fed Chair Powell, who on Tuesday repeated the central bank’s plan to “wait and learn more” about the impact of tariffs on inflation before lowering interest rates. He added that the US economy remained in a pretty good position.
