It’s a widely known proven fact that the month-to-month jobs report is extra able to inflicting massive reactions in charges than every other financial knowledge. It occurred final month in grand trend, and it’s taking place once more this morning.
Nonfarm Payrolls (NFP), which is a depend of latest jobs created, got here in at a mere 22k for August versus a median forecast of 75k. This is definitely not the largest miss when it comes to NFP, nevertheless it’s sufficiently big to spark a response within the bond market.
In normal, weaker jobs numbers immediate buyers to purchase bonds. When buyers purchase bonds, the worth of these bonds goes up. When bond costs go up, charges go down.
Today’s internet impact is a median prime tier 30yr fastened price drop from 6.45% yesterday to 6.29% at the moment. This is again in the identical vary because the low charges within the Fall of 2024.
