Yen and gold retained their gains, while U.S. and Australian bonds rallied as wage growth and hiring strength in the American labour market came below forecasts.
The U.S. labor market gave mixed signals in May, with a decline in the unemployment rate to a 16-year low contrasting with below-forecast hiring and wage growth, Labor Department figures showed Friday.
However, the latest jobs report likely won’t deter the Federal Reserve from increasing interest rates in two weeks as the economy continues to grind higher even as Washington shows few signs of moving forward with tax and spending reforms.
The World Bank expects a modest rise in global growth despite uncertainty regarding the U.S. monetary policy and bond traders’ concerns of dwindling inflation.
Oil held losses after the biggest weekly decline in a month amid concern that a boost in U.S. drilling may hamper efforts by OPEC and its allies to trim global glut.