The U.S. added more jobs than expected in May, and the unemployment rate fell to a new post-crisis low, sending Treasury yields higher as investors bet on a June rate hike by the Federal Reserve.
Total nonfarm payroll employment increased by 223,000 in May, overshooting Econoday's consensus estimate of a 190,000 gain. The total number of jobs added in April was revised down to 159,000 from 164,000, while job gains in March were revised up to 155,000 from 135,000, the U.S. Department of Labor said.
The unemployment rate edged down to 3.8%.
Yields for 10-year Treasurys rose 5 basis points to 2.910% as of 9:18 a.m. ET. The S&P 500 Index was down 0.69%.
Average hourly earnings for employees rose 0.3%, or 8 cents, month over over month compared with an estimate of a 0.2% growth. In annual terms, wages rose 2.7%, or 71 cents, in May, in line with expectations. This was above April's reading of 2.6% year-over-year wage growth.
ING said the Fed is likely to hike two more times after June in 2018, although policymakers will be keeping an eye on the global trade war, which is the main risk to ING's base case. U.S. President Donald Trump's metal tariffs could impact jobs numbers over coming months, according to ING.


