Bonds & Stocks
Treasury yields climbed as a solid jobs report bolstered bets the Federal Reserve will have room for one more interest-rate hike by July. Stocks rose on speculation the economy is strong despite aggressive policy tightening. The amount of tightening priced in by swaps linked to the next two Fed meetings edged up, with traders projecting officials will most likely wait until next month to tighten again. Two-year US rates advanced six basis points to 4.4%, paring an increase of as much as 11 basis points. Gains in the S&P 500 drove the benchmark measure toward its third straight week of gains - the longest winning streak since March.
Economy
The Senate passed legislation to suspend the US debt ceiling and impose restraints on government spending through the 2024 election, ending a drama that threatened a global financial crisis. The measure now goes to President Joe Biden, who forged the deal with House Speaker Kevin McCarthy and plans to sign it just days ahead of a looming US default. The 63-36 vote on the bill was carried by moderates in both parties, many of whom aired their misgivings about parts of the deal but were convinced that their concerns weren't worth risking the havoc a default would unleash.
World
China is poised to extend incentives for electric-vehicle purchases as part of broader efforts to shake off a sluggish post-pandemic period. The foundation for China's economic recovery is not yet solid, the nation's state radio reported late Friday, citing a State Council meeting chaired by Premier Li Qiang. China will therefore extend and optimize new-energy vehicle purchase tax exemptions, the report said, without giving more detail.