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Recent Economic Commentary
Scott Hofer, Member Strategies Director - 6/2/2023
U.S. stocks were on the rise this morning over news of Congress passing a debt ceiling bill and the latest employment data. The Senate passed legislation yesterday to suspend the debt ceiling and limit federal spending, sending the bill to President Biden’s desk to avoid a default. Also, the employment data released today showed continued strength in the labor market. Nonfarm payrolls increased in May by 339,000, handily besting expectations of 180,000 and 45,000 higher than last months revised posting. The increase was led by job creations in professional and business services followed by government and health care. However, the unemployment rate rose 0.3 percentage points to 3.7%, higher than expected, and the participation rate was unchanged. Average hourly earnings increased 0.3% for the month and 4.3% year over year.
U.S. Treasury yields are higher this morning, with the 2-year Treasury yield up 6.3 basis points to 4.43%, the 5-year Treasury yield up 6.1 basis points to 3.77% and the 10-year Treasury yield up 4.4 basis points to 3.65%. Advance rates are lower on terms less than one year, higher on terms one year and greater.