The US jobs number just came out and the figures were quite good. Two-year yields spiked on the news. So expect further curve flattening and potentially signs of a more aggressive quantitative tightening as well as a fourth 2018 rate hike in December.
Let me get this up quickly before I do a more in-depth analysis later.
Now, President Trump frontran the numbers by tweeting about them this morning. So there was widespread suspicion they would be good since he has access to the numbers the day before. The headline numbers were a 3.8% unemployment rate and a net add of 223,000 jobs, 218,000 of which were in the private sector. This was ahead of expectations.
Moreover, the nitty gritty details were also good, with hourly earnings rising 0.3% and prior months' data showing upward revisions....
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.