Market yields declined throughout the week, ending 10-13 bps lower. Declines early in the week were led by weak equity markets and concerns over global growth, leading up to a significantly weaker than forecast jobs report on Friday. The 20,000 job gain reported for February was distressingly poor, falling below all economist estimates and barely keeping the streak of consecutive monthly job gains intact. While a partial slowdown in the labor market would not come as a significant surprise to market participants, the scale of the decline caught the market unprepared.
Other facets of the report were more positive, as hourly wages rose strongly and the unemployment rate declined. The report gives FOMC policy makers ample reasoning to leave rates where they are and await further data to guide any changes to monetary policy.