Steady At The Lowest Level Since March

Gold is +0.4% in the Asia-Pac session, after it steadied near its lowest level since March on Wednesday, supported by lower Treasury yields. Over the past eight trading days, gold experienced its most extended losing streak since 2016, primarily driven by rising yields, fueled by expectations that the Federal Reserve will maintain higher interest rates for an extended period.

• The US Treasury 2-year yield finished 10bps lower at 5.05%. The 10-year yield finished down 6bps, after setting a fresh cycle high at 4.88%. At 4.73%, the 10-year yield remains 16bps higher over the week.
• US Treasury latched onto lower-than-expected ADP private employment data (+81k vs.150k est. and +177k prior). Also, the services PMI printed 50.1 (vs 50.2 flash; 50.5 prior), but the services new orders sub-index fell sharply from 57.5 to 51.8, the lowest level for the year. The decline was reportedly linked to weak domestic and foreign client demand.
• Later today the US calendar sees Weekly Claims, Trade Balance, and various Fed speakers: Cleveland Fed Mester, MN Fed Kashkari, Richmond Fed Barkin, SF Fed Daly and Fed Vice Chair Barr. The all-important Non-Farm Payrolls report is due for release on Friday.