Notes From the Desk: US Payrolls – Soothing Nerves
After a few months of strong data, today’s payroll numbers will offer central banks a touch of relief.
By the numbers:
- The US added 175k jobs versus expectations of 240k.
- Unemployment rose one notch to 3.9% versus a consensus of 3.8%.
- Wage growth slowed one tick to 0.2% m/m versus 0.3% expected.
The implications:
The rise in unemployment and cooling wage pressure supports the narrative that the next move is a cut and opens the door wider to the Fed beginning later this year.
On the back of this report, bond markets rallied with yields moving ~10 bps lower.
