Good economic news pushes bond prices down on most days, but this morning, fears of economic damage that may come from the coronavirus have exceeded what concerns might accompany central bank reaction to today’s better-than-expected Unemployment Report.
The BLS reported this morning that Non-Farm Payrolls grew by 225k in January against an expectation of only 165k. Even better news might be found in the year-over-year growth in Average Hourly Earnings of 3.1%; 3% was expected. Another positive was the slight rise in the Labor Force Participation Rate to 63.4% from 63.2%. The Unemployment Rate moved up one-tenth per-cent to 3.6%.
The Treasury’s Ten-Year is up almost a half-point in price, though, due to growing fears of the spreading coronavirus and the negative impact it is bound to cause on global economic activity. That issue’s yield has again dipped slightly below 1.60%.