ADP jobs data in focus as Treasury yields surge on labor market resilience

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The U.S. labor market continues to surprise investors as hiring accelerates into the autumn months, defying summer recession concerns.

ADP, the payroll processing group, will publish its reading on private sector hiring over the month of September Wednesday as investors remain keenly-focused on developments in the labor market amid soaring bond yields and renewed inflation concerns.

Wage readings for both new hires and job leavers, however, will likely be the focus of the report following data from the Bureau of Labor Statistics yesterday showing a surprise surge in open positions over the month of August, which rose to 9.6 million and triggered another sharp sell-off in Treasury bonds linked to inflation fears.

Last week, the BLS's weekly report showed that just 204,000 people filed for new benefit applications for the week ended Sept. 23, compared with the eight-month low 202,000 reported over the prior period. That was the lowest since early January, a figure that stoked inflation concern and, in part, triggered the ongoing risk in Treasury yields.

 

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