MNI BRIEF: China To Take Necessary Measures Following Tariffs

MNI BRIEF: Aussie Unemployment Rises To 4.1% In April

MNI: PBOC Conducts CNY2 Bln Via OMO Thurs; Liquidity Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1020 Thurs; -3.70% Y/Y

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1020 THURS VS 7.1049

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

Inflation Expectations Remain Well Anchored

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Jobs and ISM Services Miss, Tempered by Gov Jobs, Prices Paid

US TSYS
BulletMarketsFixed Income BulletsHomepage
  • Treasuries gapped higher after the headline April jobs data missed est's. Nonfarm payrolls increased 175k in April for a 65k miss along with a -22k two-month revision, but with a partial caveat that the government made up a large part of the downside surprise.
  • The u/e rate meanwhile technically surprised higher on a rounded basis at 3.9% but as we’d warned it didn’t take much and indeed it only increased from 3.83% to 3.86%, back to where it was in Feb after its surprise lurch higher.
  • Fed speak resumed: With "more jobs reports like this" quipped Chicago Fed President Goolsbee on a Bbg interview, the "more confident" the Fed is that the economy is "not over heating".
  • Tsys rallied midmorning again after mostly weaker ISM services data, but pared gains after Prices Paid bounced to 2023 levels: 59.2 vs. 54.9 est. Balance of data ISM Services Index (49.4 vs. 52.0 est), Employment (45.9 vs. 49.0 est), New Orders (52.2 vs. 54.5 est).
  • Curves bull steepened as short end rates priced in two 25bp rate cuts by December briefly, levels have moderated since: June 2024 -10% w/ cumulative rate cut -2.5bp at 5.302%, July'24 at -28% vs. -34% (post data high) w/ cumulative at -9.5bp vs. -12.3bp (post data) at 5.233%, Sep'24 cumulative -22.1bp (-25.9bp post data), Nov'24 cumulative -31.7bp (-35.6bp earlier). Dec'24 cumulative currently -46.4bp vs. -54.7bp post data as two 25bp cut pricing moderates.
231 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Treasuries gapped higher after the headline April jobs data missed est's. Nonfarm payrolls increased 175k in April for a 65k miss along with a -22k two-month revision, but with a partial caveat that the government made up a large part of the downside surprise.
  • The u/e rate meanwhile technically surprised higher on a rounded basis at 3.9% but as we’d warned it didn’t take much and indeed it only increased from 3.83% to 3.86%, back to where it was in Feb after its surprise lurch higher.
  • Fed speak resumed: With "more jobs reports like this" quipped Chicago Fed President Goolsbee on a Bbg interview, the "more confident" the Fed is that the economy is "not over heating".
  • Tsys rallied midmorning again after mostly weaker ISM services data, but pared gains after Prices Paid bounced to 2023 levels: 59.2 vs. 54.9 est. Balance of data ISM Services Index (49.4 vs. 52.0 est), Employment (45.9 vs. 49.0 est), New Orders (52.2 vs. 54.5 est).
  • Curves bull steepened as short end rates priced in two 25bp rate cuts by December briefly, levels have moderated since: June 2024 -10% w/ cumulative rate cut -2.5bp at 5.302%, July'24 at -28% vs. -34% (post data high) w/ cumulative at -9.5bp vs. -12.3bp (post data) at 5.233%, Sep'24 cumulative -22.1bp (-25.9bp post data), Nov'24 cumulative -31.7bp (-35.6bp earlier). Dec'24 cumulative currently -46.4bp vs. -54.7bp post data as two 25bp cut pricing moderates.