Bond Market Update

Data Recon

• ADP said private sector employment increased by 37,000 in May (Briefing.com consensus 115,000) following a downwardly revised 60,000 (from 62,000) in April. The goods-producing sector saw a loss of 2,000 jobs, while the service-providing sector saw an increase of 36,000. Mid-sized firms added 49,000 jobs, but small firms shed 13,000 jobs, and large firms saw a loss of 3,000 jobs. The report, which comes ahead of the more influential Employment Situation Report on Friday, stirred some growth concerns that led to some knee-jerk selling interest in the equity futures market and some impulse buying in the Treasury market. It also stirred a post from President Trump, who again chastised Fed Chair Powell for being "too late" and urged him to cut rates.
• Yield check:
  • 2-yr: -4 bps to 3.92%
  • 3-yr: -4 bps to 3.88%
  • 5-yr: -4 bps to 3.98%
  • 10-yr: -6 bps to 4.40%
  • 30-yr: -6 bps to 4.92%