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The June employment report beat Wall Street projections, with the economy adding 206,000 jobs. RiverFront Global Fixed Income CIO Kevin Nicholson joins Market Domination to discuss the implications for markets and Federal Reserve policy. Nicholson has a muted response to the jobs data, noting there is "a lot of mixed data" in recent economic indicators. He emphasizes that the Federal Reserve is likely more focused on the core Personal Consumption Expenditures (PCE) index, forecasted to rise 0.21% month-over-month in June. "I think that's where their focus is going to be," Nicholson adds that the PCE print is "more important to the Fed than the Jobs report right now." Regarding his market outlook, particularly for bonds (^TYX, ^TNX, ^FVX), Nicholson predicts, "Right now, I think that the ten-year [Treasury yield] is pretty much range-bound between four and four and a half percent for the second half of the year." He dives into potential scenarios: "If we get the Fed to pull back and delay their rate cuts, we'll see the ten-year go back into that 4.35 to 4.50 range." However, he suggests that if the Fed implements rate cuts, the yield could potentially drop closer to 4%. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Angel Smith
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