Well the big news for the week was the jobs report and it was a doozy.
Almost 500,000 below forecast. On the other hand the hourly wages were up .6%–solid wage inflation.
The immediately reaction was for the 10 year treasury to drop 2 basis points on the thought “Powell has cover to delay QE tapering”–but then rates turned and raced higher–now up 3 basis points.
We’ll have to wait and see what happens before the day is out–but I think obviously we won’t see any massive fireworks. We look forward to the next news of the PPI and the CPI coming in the next week or so.