Richard’s Thoughts on Bonds and Rising Rates
Overseas markets were mixed before the US opening. The Asia Dow was down a minuscule 0.02%, while the STOXX 600 rose a tiny 0.08%. US stocks opened lower, after a key report on employment showed healthy wage growth and hiring, which reinforced the chances of a rate increase later this month by the Federal Reserve.
In the latest economic data, 201,000 jobs were added in the month of August, slightly better than what had been expected by analysts. The unemployment rate held at 3.9%.
The wage component showed a 0.4% monthly rise in average pay, topping expectations for a 0.2% rise. Year-over-year wage growth was 2.9%, up from 2.7% in July and the fastest since June 2009. Importantly, the Consumer Price Index for All Urban Consumers (CPI-U) also increased by 2.9 percent on a seasonally adjusted basis, meaning that workers are still not making any real wage gains at all. ... Log in or subscribe to continue reading.
Premium Content Notification
A subscription is necessary to access premium content.
Please use the button below to subscribe in order to access all premium articles