The Bureau of Labor Statistics (BLS) reported the creation of 199,000 jobs in November, slightly stronger than the expected 190,000.

The birth/death model contributed only 4,000 jobs, virtually having no impact. This model considers the birth and death of companies and analyzes the trend in their ratios.

Average Hourly Earnings, which examines wage pressure from inflation, rose by 0.4%, a bit higher than expected.

Average weekly hours worked increased from 34.3% to 34.4%, a minimal rise, resulting in a 0.6% increase in weekly earnings.

In summary, it’s not the ideal jobs report for the bond market. The trend in job growth is clearly lower, yet undeniably strong.

Federal Reserve Chair Powell will likely maintain a hawkish stance, i.e., holding or potentially raising rates at next week’s meeting, though uncertainties persist.

All in all, the market did react, bringing positive news for interest rates.