US bonds get out of clutches

U.S. Treasuries headed for a weekly gain on speculation a government report today will show hiring slowed, adding to evidence easing economic growth will curb inflation. Employers last month added the least number of jobs to give Fed Reserve more scope to cut interest rates. Industries showed slower expansion in the service and manufacturing sectors.

With signs of an economic slowdown, a weak jobs number means we can expect Treasuries to rise and Lower Interest rates will boost up the bonds and treasuries. It will help the US economy to restrain inflation and economic growth.

But Employment report of US made the European bonds fall little. This report may create inflation pressure in the global market.