Stocks and bonds are responding to a predicted growth in the job market. While job growth was at the highest end of expectations, it was evidentially higher than the majority of investors and traders anticipated. This strength surprised traders and impacted rates upwards.

Yesterday’s ADP Report suggested that the payroll growth would be far higher than the forecast amount. Despite the ADP, economists held to their expected range of 125k to 135k new jobs added. The Labor Department reported that Payrolls grew by 132k. Looks like the ADP report was in the right direction, if not in the correct amount.

What pushed the bond market higher was the revision of what was reported in June. Previously the Labor Department thought Payrolls had advanced by 157k, but 190k jobs were added in May.

Other parts of the Employment Report were as anticipated. Unemployment was forecast at 4.5% across the board, the same as last month. Unemployment was 4.5%.

Hourly Earnings were predicted to be +0.3% to +0.4%. Hourly Earnings were the same as last month at +0.3%.

The average Hourly workweek was 33.9 hours, at the high end of the 33.8 to 33.9 guess.

The employment report has moved the 10-year Treasury to +.045% with the rate up to 5.189%

Steve Boxmeyer [612] 799 – 6858
steve@LendWithIntegrity.com