US GOVTS-PAYROLLS MORE HOT THAN COLD; BUYERS ENETER AS FED STILL SEEN CUTTING BY 25 BPS -IFR

BOSTON, Sept 6 (IFR) – A fairly decent payroll report all considered. The bright spots were the 0.4% wage gains (3.2% y/y) along with one-tenth rise in the workweek and the two-tenth increase the participation rate. That the number jobs came a bit light in not unexpected given the tendency for the initial August report to under-report jobs. As well, the household survey report was very strong reporting 590k new jobs along with a 571k increase in the workforce.

With a fair amount of selling seen coming in prior to the report (several block sales in TY’s overnight) the market’s post-payroll reaction is somewhat muted.

That stocks have edged back a bit and that European sovereigns are decently bid is bring in a bit of buying from both real money and from leveraged short-coverers.

Best bet; stick with a neutral range approach favoring both the buying of dips and the selling of strength.

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