Treasury Yields Dive (And Then Bounce) After AHE Miss

It looks like the AHE miss is going to set the tone, although things have already reversed course after the initial knee-jerk reaction.

As noted earlier, the average hourly earnings number is what everyone is watching in the jobs reports as it speaks to this notion that the Fed is or isn’t hiking into a deflationary backdrop.

So although the June report was a beat, the AHE miss immediately sent yields lower:

10Y

They’ve already bounced back, but the point is that no matter how positive the report seems on the surface, that AHE print is front and center in people’s minds and that’s not going to change no matter how Treasurys trade today.

********

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s