December Jobs Report: Do Economists See Cooling Signals Or Steady Growth?
Portfolio Pulse from Piero Cingari
The December jobs report showed a 216,000 increase in non-farm payrolls, exceeding expectations, with wage growth advancing and unemployment steady at 3.7%. Economists provided mixed reactions, with some seeing signs of a cooling labor market and others noting the market's resilience. The strong jobs data led to a rise in U.S. Treasury yields, negatively impacting bond-related ETFs like TLT and UTEN, which fell in Friday's session.
January 05, 2024 | 9:13 pm
News sentiment analysis
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NEGATIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) fell by 1% following the release of the December jobs report, which indicated a stronger-than-expected labor market, leading to a rise in U.S. Treasury yields.
The increase in Treasury yields as a result of the positive jobs report has a direct inverse relationship with bond prices, leading to the decline in TLT's value.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The US Treasury 10 Year Note ETF (UTEN) experienced a 0.4% drop after the December jobs report, which showed strong job growth and contributed to a rise in Treasury yields.
The positive jobs data, which suggests a robust economy, has led to higher Treasury yields, negatively affecting the price of UTEN.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 80