Bond Market Update

Data Recon

• April nonfarm payrolls increased by 177,000, the unemployment rate held steady at 4.2% with a pickup in the labor force participation rate, and there was a moderation in wage inflation that the Fed will notice.
  • The key takeaway from the report is that the employment situation in April remained relatively solid in spite of the volatility associated with the tariff actions and many castigations that they will hurt the economy. It is possible that will prove to be the case, but looking back at April, that wasn't the case in large part for the labor market.
• Yield Check:
  • 2-yr: +7 bps to 3.77%
  • 3-yr: +8 bps to 3.76%
  • 5-yr: +7 bps to 3.89%
  • 10-yr: +6 bps to 4.29%
  • 30-yr: +4 bps to 4.78%