Treasuries are lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 3.207% after closing at 3.188% prior.
Treasuriesresumed its downward trend while U.S. stock futures fluctuated after the latest jobs report reflected a tightening labor market to support the hawkish tone of the Fed on the U.S. economy. While U.S. hiring slowed in September, which was likely influenced by Hurricane Florence, the August nonfarm payrolls were revised higher from 201k to 270k. September reports showed that 134k jobs were added for the month while consensus called for an increase of 185k. Private payrolls also came in lower than expected and reported an increase of 121k versus 180k per consensus, while the August data was revised higher from 204k to 254k. Meanwhile, manufacturing payrolls rose 18k in September following an upwardly revised 5k increase in August.
The Unemployment Rate dipped to its lowest level in 48 years as the jobless rate fell to 3.70% from 3.90% prior; underemployment rose from 7.40% to 7.50% in September, while the overall labor force participation rate remained unchanged at 62.70% MoM as expected. The earnings reports also reflected solid data in September as the Average Hourly Earnings matched expectations and were up 0.30% for the month following a downwardly revised 0.30% gain in August; Hourly EarningsYoY were up 2.80% and also met expectations. We also received the August Trade Balance which showed that the goods and services deficit widened to $53.20 Billion for the month following a slightly revised $50.00 billion deficit prior. Later today at 12:00 PM (PT), the August Consumer Credit will be available and is expected to dip down to $15.000 Billion from $16.640 Billion prior.
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Treasuries resumed its downward trend while U.S. stock futures fluctuated after the latest jobs report reflected a tightening labor market to support the hawkish tone of the Fed on the U.S. economy. While U.S. hiring slowed in September, which was likely influenced by Hurricane Florence, the August nonfarm payrolls were revised higher from 201k to 270k. September reports showed that 134k jobs were added for the month while consensus called for an increase of 185k. Private payrolls also came in lower than expected and reported an increase of 121k versus 180k per consensus, while the August data was revised higher from 204k to 254k. Meanwhile, manufacturing payrolls rose 18k in September following an upwardly revised 5k increase in August.
The Unemployment Rate dipped to its lowest level in 48 years as the jobless rate fell to 3.70% from 3.90% prior; underemployment rose from 7.40% to 7.50% in September, while the overall labor force participation rate remained unchanged at 62.70% MoM as expected. The earnings reports also reflected solid data in September as the Average Hourly Earnings matched expectations and were up 0.30% for the month following a downwardly revised 0.30% gain in August; Hourly Earnings YoY were up 2.80% and also met expectations. We also received the August Trade Balance which showed that the goods and services deficit widened to $53.20 Billion for the month following a slightly revised $50.00 billion deficit prior. Later today at 12:00 PM (PT), the August Consumer Credit will be available and is expected to dip down to $15.000 Billion from $16.640 Billion prior.
The curve has bear-flattened with the UST 10-Year yield up 1.9 bps from prior closing.
Have A Nice Weekend!