Economic and Fixed Income Insights, September 10, 2019

Non-farm U.S. payroll growth slowed more than anticipated in August.  Last Friday’s data showed just 130,000 new jobs added versus an expected gain of 160,000.  July and June payrolls were also adjusted downward.  The data does little for the case against further rate cuts, which are widely anticipated at next week’s meeting of the Federal Reserve. Improved trade relations between the U.S. and China spurred a bond sell off that has pushed yields drastically higher in the past week.  The benchmark ten-year UST jumped 27 basis points to yield 1.73 percent.  Similarly, both the ten-year and 30-year MMD finished 13 basis points higher to yield 1.35 percent and 1.97 percent respectively.

Interest Rate Observations

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of September 10, 2019.

Important Disclosures

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