In this morning’s data, Initial Jobless Claims were 229,000 for the week ending June 18th, slightly higher than expected. In addition, Continuing Claims were 1,315,000 for the week ending June 11th, which is slightly less than expected. Overall, despite slight movements in the weekly data, initial and continuing claims remain low highlighting a tight labor market. Even as initial claims have increased in recent weeks, claims are well below the 300k level which is considered normal for in a healthy labor environment. As consumers have moved their spending from goods to services as we come out of the pandemic and enter the summer season, it remains difficult for many companies to keep up in terms of finding and retaining workers. Focused on balancing the stability of the labor market and prices, the Federal Reserve is likely to continue with tightening policy to address inflation through rate increases and reducing their balance sheet in the weeks ahead. In all, the yield on the 10-year US treasury ticks lower and equity futures are higher as we head into the market open.
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