The dollar strengthened and government bonds firmed ahead of Friday’s US jobs data that will be closely watched by rate-setters at the Federal Reserve.
The US dollar index, which measures the currency against its peers, edged up on Wednesday to post monthly gains of almost 3 per cent.
Investors also bought government debt, which — like the dollar — tends to rally when uncertainty causes investors to hold back from buying riskier assets.
The yield on the benchmark 10-year US Treasury note, which moves inversely to its price, fell 0.04 percentage points to 1.44 per cent at one point, before paring back slightly to settle around 1.46 per cent. Germany’s equivalent Bund yield dropped 0.03 percentage points to minus 0.20 per cent.
Economists surveyed by Bloomberg expect Friday’s non-farm payrolls report to show US employers added just over 700,000 jobs in June, up from 559,000 the previous month.
But fund managers have become…