TD Securities: Initial request data is very positive and will continue to see pricing decline for September Fed rate cut

Gennadiy Goldberg, head of U.S. interest rate strategy at TD Securities, believes that the initial request data is very positive for the market as a whole. It reinforces the fact that the growth momentum in the labor market is not slowing as reflected in the non-farm payrolls report, and it also reinforces that there are no very pronounced layoffs in the economy. What it confirms is that we are seeing an increase in the unemployment rate due to the addition of new labor rather than massive layoffs. For the market, the initial request data is quite encouraging. In the absence of contrary data, we will continue to see the pricing of the September rate cut decline and yields move higher.