Bond Market Update

Data Recon

• Initial jobless claims for the week ending November 2 increased by 3,000 to 221,000 (Briefing.com consensus 222,000). Continuing jobless claims for the week ending October 26 increased by 39,000 to 1.892 million. That is the highest since November 13, 2021.
  • The key takeaway from the report is essentially the same as last week. Layoff activity remains calm, but for employees who do get laid off it is more challenging to find a new job, which is a reality consistent with a softening labor market. Nonfarm business sector labor productivity increased 2.2% in the third quarter (Briefing.com consensus 2.3%) following a downwardly revised 2.1% (from 2.5%) for the second quarter.
• Q3 nonfarm business sector labor productivity increased 2.2% in the third quarter (Briefing.com consensus 2.3%) following a downwardly revised 2.1% (from 2.5%) for the second quarter. Unit labor costs increased 1.9% (Briefing.com consensus 0.5%) following an upwardly revised 2.4% (from 0.4%) in the second quarter.
  • The key takeaway from the report is that productivity growth is helping to keep labor costs in check.
• Yield Check:
  • 2-yr: -5 bps to 4.22%
  • 3-yr: -4 bps to 4.19%
  • 5-yr: -5 bps to 4.23%
  • 10-yr: -4 bps to 4.39%
  • 30-yr: -3 bps to 4.58%