The September jobs report is out. 336K jobs were added in September vs. 170K expected. The unemployment rate remained unchanged at 3.8% as well as the participation rate, which is at 62.8%. Average hourly earnings rose 0.2% MoM and 4.2% YoY, still way above the 2% inflation rate the Fed targets.
Overall, it’s a shocker that way more jobs were added than expected. Morgan Stanley chief US economist Ellen Zentner summed it up well:
Today's report was unequivocally strong. Too strong for policymakers to relax their tightening bias. Inflation has been decelerating faster than Fed forecasts, but continued strength in job gains will fuel doubts that the pace of deceleration in inflation will be sustained.
Long-dated treasuries fell sharply after the jobs report came out.TLT 0.00%↑ was down ~1% during today’s session and has been down ~10% since the September 20th FOMC meeting. I don’t think most investors expect fixed-income securities to be so volatile but this is 100% caused by the Fed’s moronic ZIRP/QE policy and we are just starting to pay the hefty prices.