Source: US Dept. of Treasury End of Day
• Yields increased over the week with the two-year Treasury note rising by three basis points to 4.31% while the five-year note increased by eight basis points to 4.15%
• The economy added 263 thousand jobs in September versus an expected 255 thousand while the unemployment rate fell to 3.4%
• The headline number, though slightly greater than expected shows an easing in the pace of job gains however, to the Fed’s discomfort, labor force participation fell by 0.1% to 62.3%
• The Fed is unlikely to change course anytime soon without directly observing multiple and consecutive reports that display weakening price pressures with markets currently expecting another 0.75% rate hike in November followed by 0.50% in December that would lift the upper bound of the Fed funds rate to 4.50% by the end of the year
