Bond Market Update

Awful Jobs Report Sparks Rally

• U.S. Treasuries are off to the races with the short end leading a rally sparked by the release of the October jobs report, which showed the addition of just 12,000 nonfarm payrolls (Briefing.com consensus 120,000) and the loss of 28,000 private nonfarm payrolls (Briefing.com consensus 105,000). In addition, job growth figures for September and August were revised sharply lower. The report represents a massive miss relative to consensus expectations and a stark contrast to the ADP Employment Change report that was released on Wednesday, showing the addition of 233,000 private payrolls, more than twice the amount expected by the Briefing.com consensus (105,000). The early rally has helped the 2-yr note and the 30-yr bond turn positive for the week while the 10-yr note is on the verge of doing the same.
• Yield Check:
  • 2-yr: -9 bps to 4.07%
  • 3-yr: -9 bps to 4.04%
  • 5-yr: -8 bps to 4.08%
  • 10-yr: -5 bps to 4.23%
  • 30-yr: -2 bps to 4.45%