Bond Market Update

Data Recon

• U.S. Treasuries have slid to lows, with shorter tenors leading the move, after the September jobs report beat expectations by a sizable margin.
• Hiring activity was much stronger than expected in September, the unemployment rate fell, and average hourly earnings increased more than expected. Specifically, nonfarm payrolls rose by 254,000, the unemployment rate fell to 4.1% from 4.2%, and average hourly earnings increased 0.4%, leaving them up 4.0% year-over-year.
  • The key takeaway from the report is that the labor market is in a solid position to keep the U.S. economy on a growth trajectory.
• Yield Check:
  • 2-yr: +15 bps to 3.86%
  • 3-yr: +14 bps to 3.77%
  • 5-yr: +11 bps to 3.75%
  • 10-yr: +9 bps to 3.94%
  • 30-yr: +7 bps to 4.26%