The softer US jobs report on Friday might have offered markets some much-needed relief before the weekend but I don't think it changes the main thing traders should be watching this week. And that is still the bond market. The September jobs report showed non-farm payrolls rising by just 29k, well below expectations. 10-year Treasury yields initially fell on the release, dipping to a low 5.16%. However, that didn't last long whatsoever. Yields quickly bounced back to wrap up the week near 5.28%, highlighting just how fragile the relief in the bond market remains. In seeing that reaction, I would argue that the rebound in yields says a lot more than the initial drop to the labour market data.
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