Wage Growth and Economic Indicators
Average hourly earnings in April rose by 0.2% from March and showed a 3.9% increase from the previous year, figures that also fell below consensus estimates. These metrics suggest a potential softening in wage inflation, a key factor for the Federal Reserve’s inflation targeting.
Market Reactions and Treasury Yields
The report influenced the U.S. Treasury market, with yields slightly adjusting in response to the new data. The 10-year Treasury yield plunged below 4.50%, while the 2-year yield saw a minor rise to 4.883%. The movement in yields reflects investors’ recalibrated expectations following the jobs report.
Market Forecast
The recent jobs report could be interpreted as bearish for future interest rate cuts, indicating…
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