The US labor market added 29,000 jobs in September, falling far short of economists’ expectations following a strong showing in August, and the unemployment rate ticked up to 4.2%.
Downward revisions for July and August also point to a weaker labor market than first though. The report adds to evidence that the Federal Reserve will hold rates steady at its October meeting. Traders in fed funds futures curtailed bets on a Fed rate hike, per CME Fedwatch, and the 10-year Treasury yield slid about 6 basis points after nearing its highest level since 2002.
But fresh inflation data expected next week will factor into the central bank’s decision. “Continued pressure by markets and moves higher in energy prices could force the Fed’s hand this month,” a bond investor told CNBC.