It's clearly night and day between the US indices - at their zenith with a 3rd consecutive intraday record at 5,370 - and the bond markets, which continue to deepen their losses 3 hours after the publication of the 'NFP'.
T-Bonds are the victims of a cold shower following the publication of better-than-expected figures (with 100,000 more job creations than expected).
The T-Bonds erased more than half their gains of the beginning of the week: +14.5Pts to 4.423% (vs. 4.50% last Friday).
The US economy remains robust: it generated 272,000 nonfarm jobs in May, according to the Labor Department, a number well above market expectations, which were generally of the order of 175,000.000.
Non-farm job creation for the previous two months was revised slightly downwards, from 315,000 to 310,000 for March and from 175,000 to 165,000 for April, for a total balance of -15,000 for these two months.
The unemployment rate rose by 0.1 points to 4%, whereas economists were expecting it to remain stable at 3.9%, while the labor force participation rate stood at 62.5% (NB: the unemployment rate had been below 4% for more than two years now, the first time this had happened since the 1950s).
The other negative indication is that average hourly earnings rose at an annual rate of 4.1% instead of 3.9%.

It will be difficult for the Fed to adopt a dovish tone for next week's FOMC... but beyond the employment figures, investors know that a rate cut in the US is essentially conditional on inflation returning below the symbolic 3% threshold, which is far from a given.

In Europe, Bunds have rallied +7.5pts to 2.617%, our OATs +7pts to 3.112% (vs. 3.15% 1 week ago), Italian BTPs +9pts to 3.9550%.

A development that may come as a surprise in the wake of the ECB's first rate cut since 2019.
Yesterday, 'the rate cut reinforced the idea that global monetary policy was now moving towards an easing cycle, with further cuts on the horizon', points out Jim Reid, analyst at Deutsche Bank.

'This is a significant change of direction from the policy of the past two years, during which central banks had been rapidly raising rates to curb inflation', he adds.

The support measures unveiled yesterday by the ECB should also bolster the nascent recovery of the European economy, with growth now expected by the institution at 0.9% this year, compared with 0.6% hitherto.

In terms of European figures, first-quarter 'CVS' GDP rose by 0.3% in the eurozone and the EU, compared with the previous quarter, according to Eurostat, which thus confirms its previous estimates.

In the eurozone, growth was driven by positive contributions from household final consumption expenditure (+0.1 points) and foreign trade (exports minus imports, +0.9 points).

Finally, the UK Gilts closed up +8pts at 4.30%, (down -7pts on a weekly basis).

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