Q3 employment cost index rises 0.8%

Group 1 - The third quarter employment cost index increased by 0.8%, which is lower than the expected 0.9% and marks a decrease from the previous quarters that were consistently at 0.9% [1] - This is the lowest increase since the second quarter of 2021, indicating a potential easing in employment costs compared to the elevated levels seen in the past [2] - The all-time high for the employment cost index was 1.3% in the second quarter of 2022, coinciding with a period of high inflation at 9.1% [2] Group 2 - The current yield on the 10-year note is hovering around 4.20%, with potential for closing at 4.18% or higher, which would represent a three-month high yield close [3] - The 2-year yield is currently at 3.62%, remaining unchanged and also reflecting a one-month high yield close [3] - There is a suggestion that the long end of the yield curve is experiencing upward pressure, potentially leading to a steepening of the curve [5] Group 3 - The Job Openings and Labor Turnover Survey (JOLTS) data indicates that 63% of the releases since January 2024 have been higher than the current number, suggesting a strong labor market [4] - The current metrics do not align with the easing observed in the market, raising questions about the sustainability of this trend [4] - The Federal Reserve's target inflation rate of 2% is still far from being achieved, indicating ongoing challenges in the economic landscape [5]