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Nonfarm payrolls fall below forecast, lifting bonds
The report showed unemployment declining, offset by a lower labor force participation rate, suggesting joblessness was largely unchanged.
Nonfarm payrolls fell by 23,000 compared with an 80,000 forecast, with the prior month also revised down, according to Mortgage News Daily.
The weaker jobs data is providing a near-term tailwind for fixed income markets, with Mortgage News Daily noting that bonds are rallying sharply so far.
Mortgage News Daily also highlighted that unemployment dropped in the report, though the decline was offset by a lower labor force participation rate, meaning unemployment was effectively steady.
The outlet cautioned that trading reactions to jobs reports have shifted over the past year, so the rally may not persist the same way it did when the data prints were coming in 2024.