08 July 2016 at 21:14 GMT
By the New York close today, the US stock market had hit a record high and long-dated bonds record lows, all caused by the crap shoot that is the US jobs report. As the Bloomberg chart below shows, the S&P 500 closed at a record high on a total return basis (i.e incl.dividends) and just short on a price basis while the 30 year Treasury bond made a new closing low of 2.09%.
With bond yields not responding to the big jobs number, the USD was also largely unmoved. The odds of a rate hike by the Fed this year increased to 25% – see chart below.
All in all a strange day: stock traders excited; bond and FX dealers not impressed.
We’ll see what the Fed makes of it next week.