JUSTIN TRUDEAU TO STEP DOWN AS CANADA LIBERAL LEADER AND PM

MNI: US FINAL DEC SRVICES PMI 56.8 (FLASH 58.5); NOV 56.1

CANADA'S TRUDEAU TO MAKE ANNOUNCEMENT AT 1045AM EST

MNI China Daily Summary: Monday, January 6

MNI INTERVIEW2: China Central Gov Should Buy Unsold Houses

MNI China Press Digest Jan 6: PBOC Bills, Yuan, Capital Market

EZ/UK T-Bill Calendar: Spain, Belgium, Finland, ESM On Tuesday

EZ/UK Bond Supply Calendar: BE, SI Syndications

MNI: US NOV FACTORY ORDERS -0.4%; EX-TRANSPORT NEW ORDERS +0.2%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

US TSYS: Tsys Up on Lower Than Expected ADP Jobs, ISM Services, Powell Patient

US TSYS
USBulletMarketsFixed Income BulletsNorth America
  • A flurry of early Wednesday data helped set the stage for renewed support in Treasuries: lower than expected ADP jobs gains and ISM Services data underpinned rates in the first half.
  • Federal Reserve Chair Jerome Powell said the Fed is on a path to bring interest rates back down to a more neutral level over time but because the economy appears stronger than previously thought it can move more cautiously in Q&A at a New York Times DealBook Summit.
  • Nevertheless, projected rate cuts into early 2025 continued to gain, current levels vs. this morning's (*) as follows: Dec'24 cumulative -18.9bp (-18.5bp), Jan'25 -25.3bp (-24.4bp), Mar'25 -41.3bp (-39.0bp), May'25 -51.5bp (-47.8bp).
    November's ISM Services index saw its biggest drop since June, falling unexpectedly to a 3-month low 52.1 from 56.0 (a more modest dip to 55.7 had been expected).
  • ADP employment was broadly as expected in November at 146k (cons 150k). It followed a solid downward revision to 184k from what was 233k, attributed by ADP to the latest QECEW data. “Our annual benchmarking of the full data series will occur with the January 2025 NER release.”
182 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.
  • A flurry of early Wednesday data helped set the stage for renewed support in Treasuries: lower than expected ADP jobs gains and ISM Services data underpinned rates in the first half.
  • Federal Reserve Chair Jerome Powell said the Fed is on a path to bring interest rates back down to a more neutral level over time but because the economy appears stronger than previously thought it can move more cautiously in Q&A at a New York Times DealBook Summit.
  • Nevertheless, projected rate cuts into early 2025 continued to gain, current levels vs. this morning's (*) as follows: Dec'24 cumulative -18.9bp (-18.5bp), Jan'25 -25.3bp (-24.4bp), Mar'25 -41.3bp (-39.0bp), May'25 -51.5bp (-47.8bp).
    November's ISM Services index saw its biggest drop since June, falling unexpectedly to a 3-month low 52.1 from 56.0 (a more modest dip to 55.7 had been expected).
  • ADP employment was broadly as expected in November at 146k (cons 150k). It followed a solid downward revision to 184k from what was 233k, attributed by ADP to the latest QECEW data. “Our annual benchmarking of the full data series will occur with the January 2025 NER release.”