June 04, 2024 14:14 GMT
Little Net Movement In Fed Pricing On Noisy JOLTS Data
STIR
The dovish move in Fed pricing sees a modest extension on the back of the softer-than-expected JOLTS job opening print, before upward revisions to the quits rate data help counter the move.
- The prior month’s JOLTS job openings print also saw a negative revision.
- Note that the headline print shows the shallowest level of job openings seen since Feb ’21, with the COVID induced jump higher in the metric continuing to unwind.
- A reminder that various rounds of Fedspeak have flagged an unexpected loosening in the labour market as a potential catalyst for cuts, albeit with more prominence given to higher-for-longer discussions as we moved into the pre-FOMC blackout period.
- The data leaves ~45bp of cuts priced into FOMC-dated OIS through year end (vs. 44bp pre-data).
- Just under 80% odds of a cut through the Sep FOMC are priced, with ~28bp of cuts priced through the Nov FOMC, little changed vs. pre-data levels.
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