Jolted: Bonds, Gold, & Crypto Soar After Labor Market Meltdown

Despite a tsunami of tears about rising rates and steepening curves in recent days - all pinned to panic by so-called investors over Fed independence and Trump's 'firing' of alleged mortgage cheat Lisa Cook - today saw labor market weakness spark a surge in rate-cut odds and a plunge in yields across all maturities with the curve flattening significantly.

As we detailed earlier, luck may have run out because whereas in June the labor market was still supply-constrained, when there were 342K more openings than jobs in the US, in July we are finally back to demand constrained, with 55k fewer job openings than unemployed workers, the first negative print this series since April 2021.