Labour Market Data Helps Space Off Session Cheaps

Aussie bond futures nudge higher as a fall in part-time jobs virtually fully offsets the rise in full-time employment in September (resulting in employment rising by just under 1K vs. the BBG median of +25K), with the participation rate steady at 66.6%, leaving the unemployment rate unchanged at 3.5% (which matched wider exp.).

• The ABS noted that “in line with the relatively small net change in employment, seasonally adjusted hours worked decreased by 0.6 million hours in September, less than 0.1 per cent.”
• In terms of wider slack measures, both underemployment and underutilisation nudged away from their respective cycle troughs.
• All in all, the data won’t move the needle much for the RBA, with forward looking indicators already pointing to the potential for a slowing, but still tight labour market, supported by ongoing elevated vacancy figures.
• Aussie bonds had found a bit of a base ahead of the number after pushing lower in early Sydney trade, with YM & XM now printing -10.5, while wider cash ACGB dealing sees 8-11bp of cheapening, as the curve bear flattens.
• Bills run 3-15bp cheaper through the reds.