Bloomberg Surveillance · Friday, August 7, 2026
In response to the weaker-than-expected jobs report, futures markets showed resilience, holding onto earlier gains. The yield curve saw significant movement, particularly in shorter maturities, with the two-year yield dropping nine basis points to 4.16%. This market reaction suggests an expectation of a looser monetary policy environment.
“Looks like futures, guys, at least for the moment, hanging on to those earlier games.”
“The markets movie as you can imagine, equities lift here, thinking free money will be out there in a lower rate environment.”
“The yield space is the most elastic, and you see it in the two year yield in a solid nine basis points four point one six percent, basically halfway back to that coveted three point ninety nine”