Market Talk

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Greece was not the main headline today, to no surprise. Obviously, it’s still all over the media, but the markets had the Non-Farm Payroll (NFP) to contend with instead. Not such a shocker at 223k (rate 5.3%) but the revisions (down 60k, putting April 187 and May 254) were mildly interesting.  Also, a point to note was that the participation rate was 62.6% (lowest since Oct. 1977).
Bond markets globally performed, assuming the Fed will delay the delay, but the TY/RX spread capped in by 6bp (currently trading around 151bp).
European fixed-income lagged all day as Primary Dealers prepared for mid-morning issuance. Most were easily digested (even as markets traded lower) but the OATs looked a little unsure at the tail, especially as they ended up giving Eur 7.995bn of the expected 7-8bn range.
Asian equity markets were again talking of Shanghai, as by mid-session they were down over 6% but closed off their lows -3.5%. Nikkei up 1% HS small positive.
There was the trade between the black and the yellow gold today, as oil put in an impressive 1.3% gain whilst gold continues to drift lower. See earlier blog post (Greek Crisis Fails to Stimulate Gold).