Good Thursday AM,

Unemployment claims out today were in line with expectations. Market reaction was muted. Equities are broadly up a bit (or a tad). Bonds are flattish on the day as all eyes are focused on tomorrow’s jobs report.

The 10-yr is at 4.12%. I would have expected some consolidating, as we often see before a big data release, but traders seem to be complacent for the moment. I don’t know that complacency is ever a good thing, but we will see.

Tomorrow’s report is expected to show 180k new jobs and the unemployment rate steady at 3.9%. Those are the headline numbers to look for. If fewer jobs were created and the unemployment rate pushes up, we will see further improvement to interest rates. The reverse is also true should we have more jobs created than markets expect.

Short and sweet for today… will have a lot more to say tomorrow.

Please remain safe and healthy!