Non-agricultural data fell short of expectations, and bond yields reversed and rose🫠
Friday's non-farm payrolls data fell short of expectations (209,000 vs. 230,000 expected), ending a 15-month streak of exceeding expectations. It also gave early relief to the troubled fixed income market, with the 10-year yield at It fell 7 basis points immediately after the data was released. However, a more in-depth analysis of the data showed that weekly working hours increased and average hourly wages also increased by 0.4% for three consecutive months. This caused bond yields to reverse higher and the 2/10s curve It rebounded 7 basis points and ended last week with the largest reversal and steepening since March.
