Jobs number puts four hikes on the table. Watch for QT increase and curve flattening

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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