Non-farm payroll (NFP):
The most important number to track on the jobs report this morning is not the top number, or the unemployment rate, it’s wages and it has disappointed again.
The revisions showed job growth was better in April and May than previously thought. The U.S economy has created an average of +194k jobs over the past three months.
USD has pared some of its overnight gains (€1.1419, £1.2907, ¥113.76).
Selling pressure in the bond market is stalling as the payrolls release shows once again that bond investors place more importance on the wage inflation reading than the jobs growth figure.
The market is pricing in +62% chance on the Fed lifting rates one more time before the end of the year.
The yield on the U.S 10-year Treasury note has fallen -3 bops to +2.365%
Canada jobs report:
Job Creation Keeps Chugging Along in Canada
Today’s numbers eliminate the last possible obstacle for the Bank of Canada should it choose to raise its policy rate next week (July 12) as widely expected.
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