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Calculated Risk: Tuesday: Job Openings

We knew bonds would be skittish about Treasury auctions this week, but the defensiveness began early owing to a big glut of corporate bond offerings . The damage was minimal, all things considered, with MBS only losing an eighth of a point as of 4pm ET and 10yr yields up 2bps to 1.60%. [ 30 year fixed 3.03%] emphasis added Tuesday: Small Business Optimism Index for April. • At 10:00 AM, Posted by Calculated Risk on

Treasury Yields Rise Ahead of Job Openings Data

Inflation remained front and center on Wall Street as fears the Federal Reserve may be forced to raise interest rates sooner than telegraphed keep high-growth, large-cap technology stocks under pressure. Specifically, economists are worried about shortages on the supply side of the U.S. economy: A lack of commodities, labor and other inputs to produce the totality of all the goods and services demanded by other businesses and American consumers. The Labor Department s April jobs report released on Friday initially relieved some investors of their Fed fears with a far-weaker-than-expected 266,000 payrolls added. The kneejerk reaction on Wall Street assumed that the economy added far fewer jobs because employers didn t want to hire workers in the numbers expected.

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