US payrolls rose by ๐ญ๐ฒ๐ฎ,๐ฌ๐ฌ๐ฌ ๐ถ๐ป ๐๐๐ด๐๐๐, well above ๐๐ต๐ฒ ๐ฑ๐ฒ,๐ฌ๐ฌ๐ฌ ๐ฒ๐
๐ฝ๐ฒ๐ฐ๐๐ฒ๐ฑ, sending Treasury yields higher as traders increased expectations of a September Fed rate hike. ๐
But NFP is only part of the yield story. With ๐จ๐ฆ ๐ณ๐ฒ๐ฑ๐ฒ๐ฟ๐ฎ๐น ๐ฑ๐ฒ๐ฏ๐ ๐ป๐ผ๐ ๐ฎ๐ฏ๐ผ๐๐ฒ $๐ฐ๐ฌ ๐๐ฟ๐ถ๐น๐น๐ถ๐ผ๐ป, heavy government borrowing is keeping Treasury supply and longer-term rates in focus. ๐
For traders, the impact reaches beyond bonds. Higher yields can pressure ๐ก๐ฎ๐๐ฑ๐ฎ๐พ ๐๐ฎ๐น๐๐ฎ๐๐ถ๐ผ๐ป๐ ๐ฎ๐ป๐ฑ ๐ฏ๐ผ๐ฟ๐ฟ๐ผ๐๐ถ๐ป๐ด ๐ฐ๐ผ๐๐๐, while the ๐จ๐ฆ ๐ฑ๐ผ๐น๐น๐ฎ๐ฟ has so far received limited support from increased Fed hike expectations.
With ๐จ๐ฆ ๐ถ๐ป๐ณ๐น๐ฎ๐๐ถ๐ผ๐ป ๐ฑ๐ฎ๐๐ฎ ๐ฑ๐๐ฒ ๐๐ต๐ถ๐ ๐๐ฒ๐ฒ๐ธ, what will drive yields next: ๐๐ฒ๐ฑ ๐ฟ๐ฒ๐ฝ๐ฟ๐ถ๐ฐ๐ถ๐ป๐ด ๐ผ๐ฟ ๐น๐ผ๐ป๐ด๐ฒ๐ฟ-๐๐ฒ๐ฟ๐บ ๐ฑ๐ฒ๐ฏ๐ ๐ฝ๐ฟ๐ฒ๐๐๐๐ฟ๐ฒ? ๐ค
๐ Track the themes moving the market. ๐ง๐ฟ๐ฎ๐ฑ๐ฒ ๐๐ต๐ฒ๐บ ๐๐ถ๐๐ต ๐ง๐ถ๐ฐ๐ธ๐บ๐ถ๐น๐น.
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