Industrial Strength?
April 6, 2026
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–Yields edged higher on Friday’s shortened session as Payrolls exceeded expectations. NFP +178k vs expected 65k. Previous month revised lower but the 3-month average was a respectable 68k. Unemployment rate fell to 4.3%. On the SOFR strip SFRH7 and M7 were weakest, down 7 on the day at 9632.5 and 9637.5, essentially equal to EFFR of 3.64%. USM6 contract fell 12/32 to 113-18 while WNM6 (Ultra bond) settled 116-10, down 11 or about 2 bps. (Curve flattened)
–CLK6 (WTI) made a new high last night at 115.48 but last is 110.70. Rates are little changed from Friday and stocks are marginally higher.
–ISM Services today expected 54.9 from 56.1. Inflation data to cap the week, with PCE prices Thursday and CPI Friday (yoy CPI expected 3.4% from 2.4% from energy shock).
–Interesting post below from Craig Fuller @FreightAlley.
Conclusion:
“Bottom line: Flatbed + rail strength confirm that the US is experiencing some of the strongest industrial signals in years.”
https://x.com/FreightAlley/status/2040455479860638041
