German yields are around 2.5bp higher in the...>

EGBS: German yields are around 2.5bp higher in the aftermath of the strong

average hourly earnings growth. 

- The headline payroll print was weaker than expected but signs of the storms

were in the data. The BLS pointed out "Food services and drinking places

payrolls, made up mostly of hourly workers who would not have been paid if they

missed work, fell by 104,700."

- Average hourly earnings trumped everything at a 7 year high of 2.9%Y/Y and the

4.2% unemployment rate is well through most people's belief of the

full-employment level.

- In the aftermath of the report, the SDR showed a small 4-6Y EUR swap steepener

trade. Within the EGB futures markets there have yet to be many large trades go

through, although volumes are naturally elevated. 

- The 10Y Bund yield is hanging just below the psychologically important 0.5%

barrier. But it approximately coincides with the 160.65/66 Oct 3, Oct 2 lows of

the Bund contract.