Jobs Report Great for Warsh and Bonds, BlackRock's Rosenberg Says

• June Nonfarm Payrolls came in at 57k, significantly below the 113k estimate, while the unemployment rate dropped to 4.2% from 4.3%.
• Jeffrey Rosenberg believes the report is 'great' for the Fed's patience on rates and 'good' for the bond market, reinforcing the idea of disinflation.
• He suggests the market has overreacted to previous hawkish signals from the Fed and expects rate hike bets to be pushed further out, potentially to December or beyond.

The June Payrolls Report showed weaker-than-expected job growth at 57k, with the unemployment rate dropping to 4.2%. Jeffrey Rosenberg of BlackRock views this as a positive report for the bond market and for Federal Reserve Chairman Kevin Warsh, suggesting it provides the Fed with more room to be patient on rate hikes due to easing inflation pressures. He believes the market overreacted to previous Fed signals and will continue to push back rate hike expectations.