The latest jobs data from the US is the worst for six years: 38,000 jobs created in May compared to the 160,000 expected. The market slumped on the news of the bad figures, but Yellen played them down. She said “too much attention” should not be paid to one jobs report and that she was still in favour of raising rates.
US full employment
LONDON | By Rajiv Setia and Anshul Pradhan at Barclays | Developed rates markets rallied globally over the past week, led by the long end, largely in response to the across-the-board underperformance of risk-assets. Figure 1 shows changes in ED-implied rates on the day of the September FOMC meeting, as well as the change from pre-FOMC levels to now.