A Sedate Reaction To Labour Market Report

YM is virtually unchanged in the wake of the domestic labour market report for August, while XM is a touch firmer vs. pre-release levels. The former trades -2.3 on the day, while the latter is -2.9. As mentioned in earlier bullets, the COVID-driven nature of the release, coupled with broader expectations within the policymaking sphere re: short-term headwinds for the economy followed by a sharp bounce back, meant that it was never going to be a gamechanger for broader fiscal & monetary policy, which allowed markets to react in an orderly and relatively nonchalant manner. The evolution of the hours worked component will be key in the months ahead.