By Michael Every of Rabobank
Another day, another bullish set of data for bonds. First, German unemployment rose more than expected, but more important was a slowdown in US JOLTS job openings. All the old arguments for a US slowdown, so lower rates, so booming assets were rolled out again. Chekov would note they were always on the table waiting to be used, just covered in a thin, blood-stained muslin cloth used to stem the bleeding from repeatedly going long on such instincts until now. The market focus now shifts to the ADP report today, and the services PMIs and ISM non-manufacturing surveys, including the employment and prices paid components.
