The ADP National Employment Report is published monthly by the ADP Research Institute. The report provides an estimate of US non-farm employment based on payroll data. Since the report began to be published in 2006, its total private sector non-farm employment figures have exhibited a high correlation with the Bureau of Labor Statistics (BLS) non-farm payroll figures.
The figures for February indicate private sector employment grew by 183,000, a figure which is just under the expected figure of 185,000 but considerably lower than January’s comparable increase of 300,000.
US financial markets reacted in a muted fashion. Treasury bond yields finished the day a little lower; 2-year bond yields were 2bps lower at 2.52%, 10-year yields were 3bps lower at 2.69% and 30-year bond yields slipped 1bp to 3.07%. Federal funds futures barely moved and the implied likelihood of a change during 2019 remained close to zero.