Is a Cooling Off Period or Risk-On Rally Expected? Yields Fall, Bonds Rise Following October Jobs Report.

The October jobs report fell short of expectations, with non-farm payrolls increasing by only 150,000 jobs compared to September’s 297,000. This decline can be attributed in part to the United Auto Workers strikes, resulting in a loss of manufacturing jobs. As a result, Treasury yields dropped, leading to gains in various T-bond ETFs. Economists have differing views on the impact of the report, with some suggesting a cooler pace of growth and inflation, while others anticipate a shift in interest rates by the Federal Reserve. Overall, the job growth remains healthy, but the report may trigger a risk-on rally in the market.