US 2-year yields are down for the fifth consecutive day and trading at the lowest levels since the Dec 17 FOMC decision.
Yields have fallen 4 bps today despite strong jobs growth. The market is focused on declining wages and betting it means the Fed will take its time before (and after) the first rate hike.
US 2 year yields
The same thinking is weighing on the US dollar after the earlier jobs excitement.
The Fed funds market is showing a 52% chance of rates above 0.25% in September, compared to 57% yesterday.
