- Nonfarm Payrolls in the US increased by 175K in April, underperforming market expectations of 243K.
- Unemployment Rate rose slightly to 3.9%, up from previous 3.8%.
- Average Hourly Earnings, a measure of wage inflation, declined to 3.9% from 4.1% on a yearly basis.
- Market expectations pivot toward a lower rate ahead of upcoming Fed meeting, with June rate cut odds holding firm at around 10%.
- However, for the later part of the year, expectations have increased with the odds for a July rate cut rising to 40% from a previous 25%, and almost 95% for a rate cut in September, up from 55% prior to the last meeting.
- Examining bond markets, US Treasury bond yields are down with the 2-year yield falling to 4.81%, the 5-year yield slipping to 4.48%, and the 10-year yield marginally lower at 4.49%.
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