Reply To: Traders Market Weekly: Fed and BOJ Dribble Ahead


The weekly MBA Mortgage Applications Index fell 5.2% after last week’s 5.7% drop.

The ADP Employment Change Report showed an estimated 152,000 jobs were added to private-sector payrolls in May (consensus 175,000), versus a downwardly revised 188,000 (from 192,000) in April.

Manufacturing jobs declined by 20,000 and leisure and hospitality showed a weaker hiring trend.
Large businesses accounted for 98,000 positions, medium businesses accounted for 79,000 positions, and small businesses saw a contraction of 10,000 jobs.
Annual pay for job-stayers held steady at 5.0% for the third straight month while annual pay for job-changers softened to 7.8%.

The key takeaway from the report is that it conveys softening job gains and pay growth, which is something that should be relatively pleasing to the Fed’s eye.

Treasury yields moved lower in response.

The 10-yr note yield is down three basis points to 4.31% and the 2-yr note yield is unchanged at 4.77%.