Todays podcast

• No major surprises in Friday’s US payrolls report…
• …unlike Thursday’s jobless claims data , with big (upwards) benchmark revisions
• US bond yields smartly higher Friday, up again Monday. May Fed hike odds 70% from 50%
• New BoJ Governor Ueda sounding like a chip off the old (Kuroda) block. JPY weaker
• US CPI (Wed) and US bank earnings the coming (short) week’s highlights
• AU NAB Business survey, WPAC Consumer Confidence today. Labour market Thursday

CA: Unemployment rate (%), Mar: 5.0% from 5.0% vs. 5.1 exp.
US: Jobless claims (k), wk to 1 Apr: 228 vs. 200 exp.
US: Change in nonfarm payrolls (k), Mar: 236 vs. 230 exp.
US: Unemployment rate (%), Mar: 3.5% from 3.6% vs. 3.6 exp.
US: Average hourly earnings (m/m%), Mar: 0.3 vs. 0.3 exp.
US: Average hourly earnings (y/y%), Mar: 4.2 from 4.6% vs. 4.3 exp.

In a truncated US bond market session on Friday, US Treasury yields jumped 15bps at 2-years and 8.5bps at 10 years, the US dollar rose modestly and the AUD was unchanged, still mired below 0.67. This was after the March US payrolls report revealed a 236k rise in non-farm payrolls with +17k of net revisions (230k expected). The unemployment rate fell 0.1% to 3.5% (3.6% expected) and average hourly earnings rose by an as-expected 0.3% to be 4.2% up on a year ago down from 4.6% and 4.3% expected.

Despite this evidence that wages growth is moving quite decisively in the ‘right’ direction from an inflation perspective US money market rates moved to ascribe a 70%...

Read Full Story: https://news.google.com/rss/articles/CBMiPWh0dHBzOi8vYnVzaW5lc3MubmFiLmNvbS5h...