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Rates Spark: Treasuries ranging but poised for a breakout
The US ADP employment report printed negative for November, at -32k. It also printed negative in September, August and June this year, whereas there were no negative prints last year. Things have certainly slowed. But Treasuries have built a bit of resilience to the weak jobs narrative. Partly as there are fewer immigrants coming into the country in net terms, requiring less employment generation. But also as its productivity growth rather than employment growth driving things into the future (AI, among others). The 10yr yield was lower ahead of the data, and despite the above caveats, this ADP number should have ... (full story)