Bond markets globally continue to trade with volatility as evidenced by the German Bunds 10 year debt rising the past 6 trading days at a faster pace than any time in its modern history (with German bond rates so low a small rise in yield means a lot).
Back in the U.S., all eyes were on the U.S. jobs report this week. And the job report offered a little something for everyone. The unemployment rate fell to 5.4% from 5.50% and the Labor force Participation Rate came in at 62.80% which is still near lows seen back in the 1970’s. Wage growth continues to remain stagnant.
The overall feeling from the Jobs Report is that the Fed will not “lift off” on interest rates in June so U.S. bonds responded favorably to the report. The report also shot stocks up with the major U.S. Stock indexes all trading up over 1% higher Friday morning.
With the U.S. 10 year trading favorably after Friday’s job report, we are biased toward floating with the market.