FTSE drops back as bond yields jump on US jobs figures

The FTSE 100 has fallen back below the 6,900 mark after a stronger than expected US jobs report on Friday caused investors to fret once again about the prospect of a US rate hike this year.

Figures released last week showing the US added 295,000 jobs in February restarted the 'good news is bad news' theme seen across markets for much of last year, as investors priced in an increased likelihood of a June rate hike by the US Federal Reserve. The report sent the dollar to an 11-year high against the euro, hit emerging market currencies, and prompted 10-year treasury yields to rise from 2.12% to as high as 2.26%. Equity investors were also affected, with US markets dipping after the report and the FTSE closing in negative territory on Friday. Sentiment remained uneasy thi...