Rates Won't Get Long Term Lift from Stellar June Jobs Report

Last week's Street-beating June jobs number boosted spirits and stocks on Wall Street. Nevertheless, it won't lift interest rates much as political uncertainty remains, said Joseph Seydl, capital markets economist at J.P. Morgan Private Bank (JPM) - Get Report . 'The June employment report is not enough to get the Federal Reserve to move in the fall considering all the political uncertainty stemming from globalization,' said Seydl. 'Right now December is the best bet for any rate hike.' Seydl expects the yield on the 10-year Treasury bond, now at 1.4 percent, to finish the year a little higher at around 1.5 percent. But, he believes the benchmark bond's yield will drift toward one percent in the next year or two because of the lack of risk free assets available for purchase in the global market. 'There is simply a shortage of sovereign bonds to buy out there,' said Seydl.