July Jobs Report: A Mixed Showing As Payrolls Decline But Employers Retain

U.S. payrolls fell 23K in July, sharply below expectations for nearly +100K. The unemployment rate declined to 4.1%, partially offsetting the weak job growth. Overall, the labor-market slowdown is likely to reinforce expectations for easier monetary policy, pushing rate expectations and front-end yields lower.

Analysis

U.S. payrolls fell 23K in July, sharply below expectations for nearly +100K. The unemployment rate declined to 4.1%, partially offsetting the weak job growth. Overall, the labor-market slowdown is likely to reinforce expectations for easier monetary policy, pushing rate expectations and front-end yields lower.