The ADP National Employment Report is published monthly by the ADP Research Institute. The report provides an estimate of US non-farm employment based in the private sector. 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 latest May figures indicate private sector employment grew by 27,000, well below the expected figure of 178,000 and drastically less than April’s revised increase of 271,000. Westpac described the figures as “the weakest reading since March 2010…”
US bond yields finished the day lower at the short end and market expectations of a rate cut firmed. 2-year Treasury bond yields finished 3bps lower at 1.85% while the 10-year and 30-year yields both remained unchanged at 2.13% and 2.65% respectively. The probability of a July rate cut implied by federal funds futures moved a little higher, from 66% to 70%, at a level where such a move by the US Fed would not come as a surprise.