BILS - Weekly Market Pulse: Buy The Rumor Sell The News

• The BLS reported Friday that the US added nearly 1,000,000 jobs in March, a number well above the supposed consensus of 675,000 jobs. It was what the market has been looking for - the arrival of the end-of-the-virus-boom.
• However, even a booming jobs report that showed job growth across multiple sectors of the economy, a rise in the participation rate and a fall in the unemployment rate didn't move bonds much at all. Yields Friday ended well below the peak of earlier in the week.
• The situation is even worse if you look at real yields. The 10-year TIPS yield is sitting at a negative 66 basis points, and about the only thing you need to know about future real growth is that this number is still negative.
• Another indicator that isn't buying the boom narrative, at least lately, is the copper/gold ratio. This ratio tends to track the 10-year yield, and while the 10-year yield continued to rise in March, the copper/gold ratio did not.

For further details see: