Weekly Economic Update: June 5, 2023
• Yields fell over the week with the two-year Treasury note falling by five basis points to 4.51% while the five-year note decreased by eight basis points to 3.85%.
• Nonfarm payrolls advanced by more than expected, adding 339 thousand to payrolls in May as the labor market remains resilient and has yet to loosen meaningfully.
• The unemployment rate, drawn from the household survey, dampened the outsized add to payrolls showcased by the establishment survey as the unemployment rate increased by 0.3% to 3.7%.
• In a welcome sign for the Fed, average hourly earnings moderated, advancing by 0.3% as markets are not pricing in any hikes nor cuts for the remainder of the year.