10/5/2009 3:52:44 PM
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On the subject of US non-farm payrolls it is worth noting that if the one million plus workers that have "left" the US labor force since May (i.e. they are too discouraged to look for work and drop off the official statistics) were added back into the unemployment figure, the U3 percentage would be 10.4%. Even more alarming is the U-6 measure, which provides a better perspective on the under-utilization of the US workforce - has now moved up to 17%
Large selling occurred in Thursday's and Friday session for the exchange traded fund, LQD, which represents a cross section of high grade corporate bonds.
The very vigorous selling on Thursday adds further plausibility to the notion that major trading desks were able to trade ahead of the crowd on the pending weakness of the employment data.
****we did know on thursday in the gold room that goldman sachs came out with a -250,000 number on non farm payrolls, much worse than consensus
another etf that dove thursday friday was the junk bonds, JNK
all of the above shows risk aversion is back in play , as october is historically the most volatile month in the stock market
thru monday noon, treasuries are real firm which is unusual when they face as much new supply as they do from the auctions this week
8)
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