The US nonfarm payrolls read is due again this Friday – yes there’s one happening. Isaac Poole from Oreana Financial Services says he expect a solid trend to continue. Isaac says we could see more jobs come back as households that have been reluctant to return to work are forced to as they burn through their savings and there is no more fiscal support forthcoming. Wages growth will be important for the Fed – it will help indicate whether underlying inflation is going to be more or less persistent (we think persistent, but still likely to move lower by end-2022). So why does he see a steepening in the yield curve coming? Isaac says market pricing for 3 hikes next year is likely to give way a gradual sell off in the long end relative to the short. (Source: Ausbiz)
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