John Authers reports on how a strong ADP employment report helped push 10-year bond yields to their highest this year, at the same time as an increasing oversupply of oil in the US led to a sharp fall in the oil price.
March 8 is in the books here on Wall Street. Here's the "New York Minute." It's been a fairly quiet and downcast day for stock markets around the world today, but that's not where the action was. If you take a look at the WTI Crude price, you can see it's had its worst day of trading in more than a year. And it's easy to see why-- this was the latest number we had on US crude inventories. You can see, it's an historic overhang of supply that is still waiting in US refineries. Plainly, that puts downward pressure on the oil price.
Meanwhile, we have this fascinating piece of data from ADP. They produce a monthly forecast of where private employment is heading, and it suggests that we are going to have a very strong employment number come Friday. That, in turn, more or less wipes out any chance, many people are now saying, that the Fed doesn't raise rates next week. As a result, you can see that the 10-year bond yield is now back above 2.55%, heading towards the top of its recent range.