July 7, 2023
Good morning,
Treasury prices tumbled, and stocks fell yesterday on strong jobs data. One data point in particular out of ADP Research Institute said U.S. companies added the most jobs in more than a year in June. The number looked rogue. Economists didn’t believe it, but traders had to say “what if” and U.S. Treasury yields spiked to levels last seen in 2007. It was a weird day.
To say this morning’s report by the U.S. Government for June Jobs Data drew everyone’s attention after yesterday would be an understatement. At any rate, this morning’s number came in a little light vs expectations and Wall Street drew a collective sigh of relief. Bonds are quiet and Futures are flat. Trading desk shepherds around the street can now make their summer Friday call – “let’s get the flock out of here”.
Be well,
Mike