The U.S. economy has produced a bumper month of job creation and kept the U.S un-employment rate at its lowest level since February 2001. According to the U.S. Bureau of Labor Statistics, the U.S. economy created 313,000 jobs in the non-farm sector in February.
The latest figures also include upward revisions to previous employment numbers. January’s figure was revised up from +200,000 to +239,000 and the December number was revised up from +160,000 to +175,000.
The market’s expectation for employment growth during the month was for +200,000 additional positions. U.S. financial markets initially reacted by sending yields higher before they partially slipped back. By the end of the day, 2 year and 10 year yields were 3bps higher at 2.27% and 2.89% respectively while 30 year yields were 4bps higher at 3.16%. The U.S. currency was stronger against the yen, steady against the euro and weaker against the pound and the Aussie. According to cash futures prices, the implied probability of a rate rise by the U.S. FOMC at its upcoming March meeting moved up from 87% to 90%.
