Traders lose interest in America’s jobs report

BY 9.30PM ON the first Friday of the month, the bars in Marunouchi, Tokyo’s financial district, used to empty out as foreign-exchange traders returned to their desks. London’s investment bankers, back from lunch, would be sharp and alert, helped by a rare early night. All awaited perhaps the world’s most important data release: America’s jobs report.

The release—which includes figures on non-farm employment, the unemployment rate and wages—often generated sizeable market moves. On average, five-year Treasury yields moved by 0.17 percentage points on the day of the report in 2004. The four biggest daily moves that year occurred after a release. Since then, though, market reaction has cooled (see chart). In 2019 yields barely budged, moving by less than 0.04 percentage points on publication. What explains the lack of excitement?

Before the financial crisis jobs data were thought to give a good signal about the likely actions of the Federal Reserve, which is...



via The Economist: Finance and economics Business Feeds

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