May Jobs "Too Good:" Yields Rise to Pressure Stocks & Fed

The May jobs report came in stronger than expected, with private payrolls posting a solid beat and unemployment not ticking higher. The stronger labor data pushed U.S. dollar and Treasury yields higher, reinforcing a hawkish rate backdrop. The read-through is supportive for the dollar but can pressure rate-sensitive assets.

Analysis

The May jobs report came in stronger than expected, with private payrolls posting a solid beat and unemployment not ticking higher. The stronger labor data pushed U.S. dollar and Treasury yields higher, reinforcing a hawkish rate backdrop. The read-through is supportive for the dollar but can pressure rate-sensitive assets.