The speculative bubble is in the bond market.

The labor market report for May released last Friday has solidified forecasts of a Fed cut in managed rates later this year. Nonfarm payrolls were reported as having only increased by 75,000 for the month. The job growth data for March and April were revised downward by a total of 75,000. The unemployment rate was unchanged at 3.6% with employment in the household survey increasing by 113,000 and the labor force growing by only 176,000. Average hourly earnings only grew by 0.2% for the month and is up 3.1% over the past twelve months.

 

PROBANK AUSTIN ADVISOR - JUNE 10, 2019