The US labour market continued to produce more jobs in April, sending the US unemployment rate under 4.0%. However, there is little sign of pressure on hourly wage rates and the total workforce actually shrank.
According to the US Bureau of Labor Statistics, the US economy created 164,000 jobs in the non-farm sector in April. The latest figures also include upward revisions to previous employment numbers and figures for February and March were revised up by a total of 30,000.
The market’s expectation for employment growth during the month was for +180,000 additional positions. US financial markets reacted by sending short-term yields higher while longer-term yields were either unchanged or a fraction lower. By the end of the day, 2 year bond yields were 2bps higher at 2.47% while 10 year yields slipped 1bp to 2.94% and the yield on 30 year Treasury bonds remained unchanged at 3.12%.
The US currency was stronger against the pound and euro but weaker against the yen. According to cash futures prices, the implied probability of a rate rise by the US FOMC at its June meeting remained at 100%.
