Don’t forget: tomorrow is payrolls Friday.
There’s a lot going on geopolitically speaking what with the Trump administration essentially telegraphing military action in Syria and the President’s first meeting with Xi Jinping being dominated not by trade talk or currency manipulation but by the threat emanating from Pyongyang.
Meanwhile, fresh doubts were raised about the underlying health of the US economy earlier this week when auto sales numbers disappointed “bigly.” “Car trouble” aside, we did get a blockbuster ADP print on Wednesday which, all else equal, would seem to bode well for Friday’s NFP print.
To be sure, tomorrow’s jobs data comes at an interesting time for markets. 10Y yields are all anyone wants to talk about as it seems Treasurys are one headline away from rallying hard and simultaneously driving a stake through the heart of the reflation narrative. The absence of a sell-off in USTs following the ADP print and the subsequent move lower in yields following the release of the Fed Minutes just served to underscore how precarious the situation truly is.
So that’s the setup. Below, for those interested, find Goldman’s March payrolls preview.
Via Goldman
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