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Sev
05-02-2012, 12:36 PM
Once again. The experts are surprised.
Cant wait to see the official numbers on Friday.
Its possible with adjustments that the total jobs created may slip below 100,000.
It will be interesting to see what unemployment claims were for last week were as well.

<span style='font-size: 20pt'>US Treasury Prices Climb To Session Highs After ADP Jobs Report </span>

http://online.wsj.com/article/BT-CO-20120502-708369.html

NEW YORK (Dow Jones)--U.S. Treasury prices shot up to session highs Wednesday after a report showed fewer private-sector jobs were added in April than most economists had expected.

Private-sector jobs in the U.S. increased just 119,000 last month, according to a national employment report calculated by payroll processor Automatic Data Processing Inc. (ADP) and consultancy Macroeconomic Advisers. The gain was far below economists' median expectation of 175,000 contained in a survey done by Dow Jones Newswires.

The disappointing report feeds into increasing fears that the U.S. economic recovery might hit a snag as it did around this time of year in 2011 and 2010. The discouraging read on the country's labor-market conditions for April also doesn't bode well for the government's much-anticipated nonfarm-payrolls release due Friday.

In recent trading, bids for safe-haven Treasurys strengthened, taking benchmark 10-year notes up 15/32 in price to yield 1.905%. The 30-year bond gained 1 4/32 to yield 3.104%, while two-year notes edged up a fraction in price to yield 0.262%. Debt prices move inversely to their yields.

Tuesday, a strong manufacturing indicator had dented the appeal of Treasurys. But the tone quickly shifted Wednesday as investors were confronted with a slew of disappointing economic signals. U.S. Treasurys were gaining ahead of the ADP data, following worrisome releases from the euro zone earlier in the session.

Manufacturing activity in the euro zone shrank as its fastest pace in April in nearly three years, with the reading on Germany's sector falling to 46.2 from 48.4 last month. Meanwhile, the region's unemployment rate increased to match its record high hit in March.

The concerns also sent buyers into German bunds, regarded as a harbor within their region. The yield on 10-year German bunds sank about 0.05 percentage point on the day, to 1.614%, testing its record low of 1.598%.