Bond Market Update

Data Recon

• According to ADP, private sector employment increased by just 77,000 jobs in February (Briefing.com consensus 145,000) -- the smallest increase since July -- with small businesses losing 12,000 jobs. Separately, year-over-year pay gains for job changers slowed from 6.8% to 6.7% while pay gains for job-stayers remained flat at 4.7%.
  • The key takeaway from the report is that it reflects a slowdown in hiring activity, which will be construed as a sign of U.S. growth losing some steam.
• Yield Check:
  • 2-yr: -5 bps to 3.91%
  • 3-yr: -4 bps to 3.91%
  • 5-yr: -2 bps to 3.98%
  • 10-yr: -1 bp to 4.20%
  • 30-yr: UNCH at 4.51%