CANADA DATA: Canada May Jobless Rate 7%, Highest Since 2016 Ex-Pandemic
Jun-06 12:30
- Unemployment rate 7% in May, the third straight increase. Rate was in line with economist expectations and followed 6.9% in April.
- Employment +8.8K vs MNI consensus -15K, after+7.4K in April. Despite uncertainty over US-Canada tariffs, the increase was driven by wholesale and trade +43K, which was offset by public administration -32K after the elections in prior month.
- Full-time employment in May +57.7K on private sector hiring but part-time jobs -48.8K as temporary election hiring in April reversed.
- Hours worked unchanged in May and +0.9% YOY.
- Average hourly wages +3.4% YOY, matching growth rate in April.
- Youth unemployment about highest since 2009 at 20%, up about 3pp from year earlier.
- BOC held key rate at 2.75% Wednesday and said it may cut if economy weakens and inflation stays under control.
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BUNDS: German 10yr Yield is nearing 2.50%
May-07 12:28
- Bund is still probing Monday's high of 131.24 (circa 2.5% in Yield), all very gradual, but Volumes have picked up a little, Schatz was bought in 10k, Bobl 5k.
- While extreme moves should still be limited ahead of the Fed, further upside traction opens to 131.71, followed by Friday's gap, up to 131.90 and the big one at 132.03.
- In Yield terms, next support comes at 2.43%, which equates to 132.01, close to that 132.03 level.
US: MNI POLITICAL RISK - Bessent Tees Up Trade Talks With China
May-07 12:18
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- President Donald Trump will receive an intelligence briefing in the morning before meeting Vice President JD Vance for lunch in the afternoon. Asian markets will be watching for a signal on how the White House will approach escalating hostilities between India and Pakistan.
- After upending transatlantic ties at the Munich Security Conference in February, Vance will speak at an event today hosted by the same organisation.
- Markets will be monitoring Trump’s Truth Social account for his response to the Fed's rate decision.
- Treasury Secretary Scott Bessent is on Capitol Hill again today to give his 'Annual Testimony' to the House Financial Services Committee. Bessent and USTR Jamieson Greer are aiming to dial down tensions with Beijing at their first official talks with Chinese counterparts this weekend.
- The US trade deficit rose in March as US businesses stockpiled goods.
- Trump struck a conciliatory tone with Canadian Prime Minister Mark Carney but downplayed the prospect of a trade deal.
- The budget ‘Big Six’ will meet at Treasury today as Republican leaders struggle to get moderates and conservatives on the same page on reconciliation spending cuts.
- Senate Majority Leader John Thune (R-SD) is expected to hold a Thursday vote on a landmark crypto bill.
- Trump announced a truce with the Houthis and teased a "very big announcement" ahead of his Middle East trip.
- Poll of the Day: The economy is a “liability” for Trump despite a stabilisation of his approval.
Full Article: US DAILY BRIEF
PIPELINE: Corporate Bond Roundup: Athene Global Funding 2Pt on Tap
May-07 12:16
- Date $MM Issuer (Priced *, Launch #)
- 05/07 $Benchmark Athene Global Funding 3Y +125a, 3Y SOFR
- $24.9B Priced Tuesday led by $5B BoA 3pt. Total issuance for the week at $38.7B
