The Bureau of Labor Statistics just released its Employment Situation Report for April and the results weren’t pretty. Non-Farm Payrolls grew 266k last month falling far short of the estimated growth of 1M. The Unemployment Rate was expected to fall to 5.8% from 6%, but instead rose to 6.1%. That was unexpectedly helped by an unexpected rise in the Labor Force Participation Rate to 61.7% from 61.5%. Average Hourly Earnings grew 0.7% for the month with the year-over-year pace dropping to a rise of 0.3% from 4.2% as old data falls away from the twelve-month calculation. Average Weekly Hours saw an uptick to 35 from 34.9.
Treasury prices are up big on the news and the yield on the Long Bond is down to 2.20% while the Ten-Year has rallied to 1.51%. The Two-Year sits at 14 basis points. Crude oil is off slightly to $64.44 while gold’s $21 rally has taken that price to $1,836. Equity futures have turned from green to red.