The dollar is surging and bonds are getting smoked after the jobs report
(Flickr/Iain A Wanless)
Stocks are lower and bonds are getting crushed after the May employment report showed that the US economy added 280,000 jobs – a big beat – and the unemployment rate rose to 5.5%.
Near 12:40 p.m. ET, the Dow was down 61 points, the S&P 500 was down 4 points, and the Nasdaq was down 4 points.
On Thursday, the Dow and the S&P 500 had their weakest day in four weeks, following a selloff in global bond markets.
Treasuries sold off sharply after the jobs report. The yield on the benchmark 10-year note jumped to a new year-to-date high above 2.4%.
In an interview on Bloomberg radio, Janus Capital's Bill Gross said the jobs report implies a "bear market for long term bonds."
The dollar jumped more than 1%, with its index gaining to around 96.83. The yen hit about 125.60 vs the dollar, the highest level in around 13 years.
Gold slipped to a three-month low of around $1,166 per ounce, falling by about $9.
The jobs report showed that wages rose faster than expected. Average hourly earnings climbed 0.3% month-over-month, and 2.3% year-over-year.
Yields are higher again, after bonds paused a selloff on Wednesday that was also seen across Europe. Here's a chart of the spike in the 10-year treasury yield on Friday morning:
(Investing.com)
And here's the dollar's spike:
(Finviz)
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