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Actionable news in TLT: ISHARES 20+ YEAR TREASURY BOND ETF,

Fed, again, left with egg on its face as recovery falters

All that hawkish Fed talk in recent weeks, as well as the market's knee-jerk reaction, seemed kind of silly after Friday's dismal jobs report.

Expectations for a summer rate hike fell into a sinkhole Friday after the Labor Department reported that nonfarm payrolls grew by just 38,000 in May, amounting to the worst monthly jobs growth in five years. A decline in the unemployment rate to 4.7 percent came only because 664,000 Americans fell out of the workforce.

All of that happened amid a growing chorus of Fed members professing in recent weeks that a rate hike was appropriate and imminent. The economy, they contended, was gaining steam, with employment near capacity and inflation comfortably climbing toward the U.S. central bank's 2 percent target.

Then just that quickly, expectations changed. Traders who had been pricing in a 58 percent chance of a July rate hike took the likelihood down to 34 percent. Within two hours of the payroll report's release, the market was projecting no rate hike until at least December.

After weeks of Fed officials attempting to recalibrate what had been dovish market expectations...


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