The US lost the most jobs in 5 1/2 years as September’s Jobs report showed a loss of 159,000 jobs - worse than estimates of -105,000. The unemployment rate surprisingly stood steady at 6.1%. There were very slight revisions to the prior two months which added a net 4,000 jobs. So far in 2008, we have lost 760,000 Jobs.
This was a lousy report - and came in just as we had been anticipating. Normally, Bonds would be making a move higher on the news - however, prices have bounced around because, there is now talk that the Fed and other Central Banks around the world are poised to actually start cutting rates and as we all know rate cuts are inflationary and bad for Bonds.
