Zero Hedge
0
All posts from Zero Hedge
Zero Hedge in Zero Hedge,

"Don't Be Out Of The Office June 17th"

As UBS' Maury Harris proclaims in the headline, "don't be out of the office on June 17th" - the mid-year FOMC meeting. Today's jobs data will only serve to boost the Fed's confidence that they are reading the labor market correctly, and that is being rapidly 'priced-in' to the short-end of the yield curve as implied rates surge...

 

 

Via UBS,

Don't be out of the office June 17th

 

Earnings jump 0.5% m/m, now 2.2% y/y

 

Solid payroll gains and a slight uptick in the unemployment rate are overshadowed by a jump in average hourly earnings which took the year-over-year rate of earnings growth to 2.2%. With other measures of wages pointing towards normal wage gains the data today will only serve to boost the Fed's confidence that they are reading the labor market correctly.

 

Unemployment up 0.1pp, but participation up 0.2pp

 

The unemployment rate did inch up to 5.7% but the participation rate rose to 62.9% from 62.7%. Even excluding population control shifts, the household employment figure jumped sharply.

 

Solid report, solid income flows

 

The combination of a long workweek, the jump in earnings and a 257,000 gain in payrolls (404,000 including revisions) suggests a sharp pickup in aggregate labor income.

*  *  *

Quite a jump in rate expectations post-payrolls...