Softer June payrolls reinforce expectations of less restrictive Fed stance, according to CaixaBank Research

Financial markets traded mixed on Thursday as softer-than-expected June non-farm payrolls data, coupled with a decline in labor force participation to a five-year low, slightly reinforced expectations of a less restrictive Federal Reserve monetary policy. Fed's Daly indicated that monetary policy remains moderately restrictive. This led to sovereign curves steepening on both sides of the Atlantic and declining expectations for further ECB rate hikes.