The employment report came in at 110,000, which was below even the lowest economist estimates.
If your bearish, you’re prone to think that we now have a slowing economy, as well as a Fed that wants to get more aggressive in raising short term rates. With the 10 year rates falling to 4.5% this morning and the Fed still expecting to go to 4% on the short end by the end of the year, a flat yield curve isn’t far away. And a flat yield yield curve usually signals a recession.