Bonds opened higher this morning, but turned lower after ADP reported 40,000 new private sector jobs added in May. Once factoring in an additional 25,000 new government jobs, which are not part of the ADP number, the Report suggests Friday’s official Jobs Report will come in around 65,000. But that would be far greater than the loss of 70,000 jobs in May that economists expect. The ADP Report has not always been a great indicator, so the numbers are taken with a “grain of salt”. And we also know that the so called “official” Jobs number is susceptible to significant revisions.
We’ll have the official number on Friday.
