Even a missed jobs report and the Fed talking dovish aren’t keeping yields lower

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Today, jobs data missed estimates and some Fed members sounded dovish yesterday, so the 10-year yield had an epic fall from Thursday highs of 5.34% to a low of 5.17%, but it’s currently at 5.28%. Can you say a wild Friday? The market is so wild that even a missed jobs report and the Fed talking dovish can’t keep yields lower for the day.A lot has happened in the last 24 hours, so let’s break it down because it can give us a framework for the future after a massive rise in the 10-year yield over the last few months. From the BLS report: Both nonfarm payroll employment (+29,000) and the unemployment rate (4.2 percent) changed little in September, the U.S. Bureau of Labor Statistics reported today. Employment in all major industries changed little over the month. The job estimates were for 90,000, and we came in at 29,000 and we had negative revisions.The three-month average job creation is at 51,000; this is below my breakeven of 78,000 but above the Fed’s breakeven. This is a reason why the unemployment rate is still low, as population growth has collapsed in America so we don’t have as many people looking for work as before. The biggest hit to the jobs report was to the government ...

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