Jobs gains surprise
A big upside surprise for US nonfarm payrolls, with the economy adding +336,000 positions in September.
After revisions, the 3-motnh average gain for payrolls was strong at above +250k.
Initially markets got very excited and bond yields spiked.
However, upon delving into the detail, the report wasn't nearly as strong as first assumed.
For example:
The unemployment rate was flat at 3.8 per cent, but is likely to trend higher from here, having been as low as 3.4 per cent earlier in the calendar year.
Average hourly earnings growth was slow again over the month at +0.2 per cent, taking annual growth in earnings down to +4.1 per cent, the slowest since September 2020.
Having initially got excited, markets reversed their earlier panic.
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Australia's 3-year bond yield is trading back down at 4 per cent.
