U.S. government debt yields slipped Friday after the U.S. government reported that payroll growth slowed in July and an announcement from the Chinese government that Beijing will impose tariffs on roughly $60 billion in U.S. goods.
The Department of Labor said that total nonfarm payrolls increased by 157,000 for the month, below the 190,000 expected by economists polled by Reuters. The unemployment rate fell one-tenth of a percentage point to 3.9 percent, as expected, and is around its lowest level in nearly 50 years.
A tightening labor market and healthy domestic demand have spurred worries of an overheating economy and continued interest rate increases by the Federal Reserve.
But despite the robust labor market, wage growth remains sluggish; average hourly earnings rose 2.7 percent over the same period a year ago, or 0.26 percent over the last month.