U.S. jobs data for the month of June 2013 came in better than expectation and strangely pushed both bond yields and stocks higher on 5th July, a rare event when both bonds and stocks move in same direction. Stocks are inversely correlated with bonds and usually goes up when bond yield falls and vice versa.
CBOE 10-year yield on T Note rose to the highest in almost two years at 2.72% while S&P 500 closed 1 percent higher on Friday.
Following are the important highlights of the jobs data:
- U.S. jobless rate close to a four-year low in June 2013
- Payrolls rose by 195,000 workers against the forecast of 165,000
- Factories reduced payrolls by 6,000
- Construction companies added 13,000
- Automakers increased employment by 5,100
- Retailers added 37,100 jobs
- The unemployment rate in June remained constant at 7.6% over previous month
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