Markets & Economy

4 reasons today’s good news on jobs isn’t pushing rates up

The insane principles governing the bond market since 2008 remain in effect

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This morning's news -- 203,000 net new jobs in November -- is unambiguous good news. Under normal circumstances, good economic news pushes up interest rates, but today's economy does not resemble normal, and so rates are unchanged. This payroll data is especially helpful because we've been waiting to see the negative effects of the "shutdown." Someday there may be a government shutdown with significant economic impact. However, the shrieking all through September and October about damage and threats of default was political-media bloviation, nothing more. As pleasant as the payroll news, beware happy-talk. There is no acceleration in these numbers, except in one spot: The jobs gained were better quality than in many prior reports, less retail/hospitality, more with better prospects for stability and higher pay. However, better pay is still in prospect, not in wallet: November wages rose 0.16 percent, no change in trend in the 2 percent overall gain in the last year. Aggrega...