Though Dec Non-Farm Payroll gained 155K, better than expected, the benchmark US 10Y rose back to 132, giving back a large part of losses after the surprising FOMC Minutes the day before.
The main focus of this move appears to be not the headline gain, but rather the Unemployment Rate that followed each NFP announcement. Market participants believe that Unemployment Rate will play a larger influence vs actual job creation in Fed’s decision to cut/continue QE3, giving Unemployment Rate a larger role to play in 2013 compared to the NFP headline figure which has always been in the spotlight instead.
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