The jobs report missed, and missed “bigly.”
This was just about the last thing the reflation narrative needed following last night’s decision by the Trump administration to launch airstrikes against targets in Syria.
Predictably, yields and the dollar are plunging with the 10Y yield hitting YTD lows.
Treasuries surged after a report showed U.S. employers added far fewer jobs last month than forecast, hurting the case for multiple Federal Reserve rate hikes this year.
- The Labor Department said the U.S. added 98,000 jobs in March, compared with the median forecast of 180,000 in a Bloomberg survey, and a whisper number among traders of about 210,000.
- Benchmark 10-year Treasuries yielded 2.29 percent as of 8:32 am, touching the lowest levels of 2017
- Before the data, traders were fully pricing in one additional hike in 2017, futures data compiled by Bloomberg show
- Earnings data, rather than payrolls change, have dictated Treasury market reaction to the employment report for past six months, Wells Fargo strategist Mike Schumacher wrote in note this week