June 1, 2018
The labor market continues to tighten and in imposing fashion during May with payrolls up 223,000 and the unemployment rate down 1 tenth to 3.8 percent. There is some pressure evident in wages but nothing dramatic and nothing to shake up the outlook for still gradual rate hikes from the Fed.
Bonds once again were the week's highlight as the 10-year Treasury yield, supported by the limited concern over inflation and also by outflow from European bonds, edged further below 3 percent, ending Friday at 2.90 percent for a 3 basis point decline in the week. Oil had a tough week, losing contact with $70 and down 3.1 percent to $65.61. Gold remains very stable, just under $1,300, while the Dow slipped 0.5 percent on the week to 24,635.