US Treasury yields fall on ECI miss

31-Jul (CNBC) — U.S. Treasury prices rose on Friday, the last trading day in July, after the second-quarter employment cost index missed expectations.

The yield on the benchmark 10-year Treasury notes, which moves inverse to the price, fell about 7 basis points to trade around 2.19 percent, after closing at 2.268 percent.

…U.S. wages and benefits grew in the spring at the slowest pace in 27 years, stark evidence that stronger hiring hasn’t boosted pay, according to the Associated Press.

The Labor Department said the employment cost index rose 0.2 percent in the second quarter after a 0.7 increase in the first quarter. Wages and salaries alone also rose 0.2 percent.

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PG View: This certainly raises some doubts about a September rate hike. Lower yields are weighing on the dollar, which in turn has boosted gold, which is now up more than $11 on the day, and back above $1100.