Following the extended July 4th weekend, the economic landscape remained dynamic, attracting the attention of economists. The minutes from Wednesday’s most recent FOMC meeting underscored the Federal Reserve’s unwavering intent to elevate interest rates in the forthcoming months. On Thursday, the ADP Employment report underscored the labor market’s vigor, revealing an addition of 497,000 jobs in June.
The 2-year and 10-year Treasury yields have surpassed 5% (nearing a 2023 peak) and 4% (marking the first occurrence since March), respectively, due to expectations of ongoing rate increases.
The week’s focal point regarding economic data is the Non-Farm Payrolls report. Today’s data release indicates signs of a moderation in employment growth. June witnessed an increase of 209,000 non-farm payrolls, accompanied by an unemployment rate of 3.6%. This marks a significant decline from May’s revised total of 306,000, marking the most sluggish month for job creation since December 2020.
