October nonfarm payrolls crushed expectations with 165,000 new jobs, pushing the 10-year Treasury yield up 6.4 basis points to 4.894% as markets recalibrate for a possible December Fed rate hike.
October nonfarm payrolls of 165,000 smashed the 65,000 estimate, September was revised up to 60,000, unemployment fell to 4.1%, and wages beat at 0.4% monthly and 3.1% yearly. The hot data pushed the 10-year yield up 6.4 basis points to 4.894% and revived December rate-hike bets, supporting further yield upside.
The economy added 165,000 jobs in October, far more than the 65,000 expected, with wages up 3.1% year over year, so bond investors price in a greater chance of a Fed rate hike in December, pushing the 10-year yield up 6.4 basis points to 4.894%.
Payrolls of 165,000 doubled expectations, unemployment dropped to 4.1% and wage growth beat at 3.1% year over year, all pointing to Fed hawkishness. The report is likely to have traders again betting on a December rate hike, a supportive setup for the dollar.
With 165,000 jobs added versus 65,000 expected and wages rising 3.1% year over year, traders are likely to again bet on a December Fed rate hike, which is supportive for the dollar.
The blowout jobs report (165,000 vs 65,000 expected) raised the odds of a December Fed rate hike back toward prior highs, a headwind for bitcoin, which was already down a hair just after the release, trading at $75,800 amid an ongoing stock market rout.
Bitcoin slipped a hair just after the release, trading around $75,800, as the strong labor data revived expectations of a Fed rate hike next month.
Nasdaq 100 futures held a 1.5% gain after the release, but the hot payrolls print and falling unemployment (4.1%) make a December Fed rate hike more likely, which the article flags as a risk given the ongoing stock market rout and next week's CPI and PPI as the bigger decision factors.
It is mixed: futures were up 1.5% after the data, but the strong 165,000 job gain and 4.1% unemployment raise the chance of a Fed rate hike in December, which could weigh on stocks unless next week's inflation data and market stability argue otherwise.
The U.S. labor market surged in October, adding 165,000 jobs and significantly outperforming the 65,000 estimate. The unemployment rate dipped to 4.1% while wage growth accelerated to 3.1% year-over-year, prompting a rise in Treasury yields and reviving expectations for a potential Federal Reserve rate hike in December.
The economy added 165,000 jobs in October, far more than the 65,000 expected, with wages up 3.1% year over year, so bond investors price in a greater chance of a Fed rate hike in December, pushing the 10-year yield up 6.4 basis points to 4.894%.
Bitcoin slipped slightly following the release, trading around $75,800, as the strong labor data revived expectations of a Fed rate hike next month.