Economic and Fixed Income Insights, July 9, 2019

US employers added 224,000 jobs in June, far surpassing the expected 160,000 gain, according to Bloomberg.  Prior to Friday’s report, the markets were bracing for a 25 basis point rate cut from the Fed at this month’s meeting.  Now, as Chairman Powell testifies before Congress Wednesday and Thursday, investors will be looking for any indication that the report might delay policy actions as officials remain data dependent. Long-term treasury rates are up week over week as investors moved to riskier assets on the strong jobs data.  The 10-year UST finished 9 basis points higher, while the long bond finished 4 basis points higher.  Municipals lagged behind treasuries and finished just slightly lower for the week.

Interest Rate Observations

 

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of July 9, 2019.

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