jobs report stunner whacks the bonds
* Nonfarm payrolls ROSE 167,000 on the month, vs. forecasts for a 100,000 gain. And "unofficially," I think a lot of people were looking for a nasty number because the ADP jobs report said the economy LOST 40,000 jobs.
* The unemployment rate remained at 4.5%.
* Here's the biggie for bonds: Average hourly earnings surged - up 0.5% vs. market forecasts for a 0.3% gain. The year over year gain in AHE was 4.2%, above the 4.0% forecast. This tied last month's cycle high, which was the highest since early 2001.
Bottom line: Bonds were UP about a half point going into the number. They're DOWN about a half point now. That's a gigantic reversal. I can't wait to see how things close.