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Yields tick higher after jobs report beats expectations
The unemployment rate held steady, but participation rose 0.2%, which would have lowered unemployment by about 0.1 to 0.2 if participation had stayed unchanged.
Mortgage News Daily said the latest jobs report showed a large headline gain, with jobs rising 162k versus a 56k forecast. The outlet noted that while the gap was unusually wide, similar divergences have happened before alongside volatility in labor force composition.
The report kept the unemployment rate steady, but the labor force participation rate increased by 0.2%. Mortgage News Daily said that uptick implies the unemployment rate would have fallen roughly 0.1 to 0.2, depending on rounding, if other factors had stayed the same.
According to Mortgage News Daily, bonds weakened immediately after the data release. Even so, 10-year yields were only 2.8 basis points higher on the day, and the move was described as largely undoing the prior Waller reaction in Fed Funds Futures.