ADP and Challenger - Gray reports out - both reports less than expectations and US Treasuries react as you would expect !

http://www.zerohedge.com/news/10y-treasury-under-16-record-low-yields-continue

10Y Treasury Under 1.6% - Record Low Yields Continue

Submitted by Tyler Durden on 05/31/2012 08:50 -0400

With 10Y rates under 1.6%, new record low yields, we suspect Bernanke's 'keep rates low to help housing via QE' argument is going to be a tough one. Perhaps its just 'print money to save the world for 3 more months' honesty will just have to come out...

and 30Y rates are dropping rapidly back to the plunge lows of Dec 2008...

Chart: Bloomberg

http://www.streetinsider.com/Press+Releases/U.S.+Private-Sector+Employment+Increased+by+133,000+Jobs+in+May,+According+to+ADP+National+Employment+Report/7482350.html

ROSELAND, NJ -- (Marketwire) -- 05/31/12 -- Private-sector employment increased by 133,000 from April to May on a seasonally adjusted basis, according to the latest ADP National Employment Report� released today. The ADP National Employment Report, created by Automatic Data Processing, Inc. (ADP�), in partnership with Macroeconomic Advisers, LLC, is derived from actual payroll data and measures the change in total nonfarm private employment each month. The estimated gain from March to April was revised down modestly, from the initial estimate of 119,000 to a revised estimate of 113,000.

U.S. Nonfarm Private Employment Highlights -- May 2012 Report:

 --   Total employment:                  +133,000

 --   Small businesses:*                 +67,000
 --   Medium businesses:**               +57,000
 --   Large businesses:***               + 9,000

 --   Goods-producing sector:            +1,000

 --   Service-providing sector:          +132,000

Addendum:
 --   Manufacturing industry:            - 2,000

* Small businesses represent payrolls with 1-49 employees
** Medium businesses represent payrolls with 50-499 employees
*** Large businesses represent payrolls with more than 499 employees
Note: All data included in the ADP National Employment Report is based on
 size of payroll. In some cases, small and medium-size payrolls belong to
 businesses employing more workers than indicated by the size grouping.

According to today's ADP National Employment Report, employment in the nonfarm private business sector rose 133,000 from April to May on a seasonally adjusted basis. Employment in the private, service-providing sector rose 132,000 in May, after rising a revised 119,000 in April. Employment in the private, goods-producing sector added 1,000 jobs while manufacturing employment declined by 2,000 in May, its second consecutive monthly decline. Construction employment fell by 1,000, the second consecutive decline following six monthly advances, likely driven in part by unusually warm weather during the winter months. The financial services sector added 8,000 jobs from April to May.

"This month's ADP National Employment Report shows an increase of 133,000 new jobs, nearly entirely driven by the service-providing sector," said Carlos A. Rodriguez, president and chief executive officer of ADP. "Over the first quarter of 2012, monthly employment gains averaged just over 200,000. However, during the first two months of the second quarter, the average monthly employment gain slipped to 123,000. We hope to see expanded job creation in the future, fueled by greater performance in the goods-producing and service-providing sectors alike," Rodriguez added.

According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "While May's increase was the twenty-eighth consecutive monthly advance, it nonetheless reflected a notable slowdown in the recent pace of hiring. The sharpness of the deceleration seems consistent with other incoming data suggesting the economy, weighed down by heightened uncertainty over the European financial crisis and by growing concerns about domestic fiscal policy, slowed early in the year."

Prakken added: "The modest rise in private employment suggests that the national unemployment rate probably did not decline in May unless the labor force continued to decline. Hence, today's estimate, especially if reinforced by a weak reading on employment from the Bureau of Labor Statistics on Friday, likely will fuel concern that the economy is slowing fundamentally for the third summer in a row."

Employment levels among medium-sized payrolls -- those with 50 to 499 workers -- rose by 57,000. Employment on large payrolls -- those with 500 or more workers -- increased by 9,000 jobs.

The matched sample used to develop the ADP National Employment Report was derived from ADP data, which, during 2011, averaged about 344,000 U.S. business clients and represented over 21 million U.S. employees. This approximately represents the size of the matched sample used this month.

Small Business Highlights -- May Report: Due to the important contribution small businesses make to economic growth, employment data that is specific to businesses with fewer than 50 employees is reported in the ADP Small Business Report� each month. The ADP Small Business Report is a subset of the ADP National Employment Report.*

Employment on small payrolls -- those with up to 49 workers -- rose 67,000 in May.

• Total nonfarm private small business employment: 67,000 jobs created
  • Goods-producing sector gained 4,000 jobs
  • Service-providing sector added 63,000 jobs

* All size data included in the ADP National Employment Report is based on size of payroll. In some cases, small and medium-size payrolls belong to businesses employing more workers than indicated by the size grouping.

and..

http://www.businessinsider.com/may-challenger-job-cuts-2012-5

LAYOFFS SURGE 66% IN MAY OVER LAST YEAR

Joe Weisenthal | May 31, 2012, 7:31 AM | 897 | 13

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ORIGINAL POST: The most jam-packed period of economic data reports that we can ever remember begins momentarily.

At 7:30 we get the Challenger Job Cuts report, which measures announced layoffs on a year-over-year basis.

There's no analyst estimate, but last month there was an 11.2% increase.

We'll have the number right here.

UPDATE:

Layoffs surged 66% in May according to Challenger, via Bloomberg.

The 61,887 announced cuts was the biggest rise in 8 months, according to Bloomberg's Linda Yueh.

Total announced layoffs were

Here's a full table of the layoffs by industry from the report.

Note that 27,754 are from computer-industry layoffs. That's all about HP. Without that, the number wouldn't have been quite that bad, although the layoff is still a layoff.

Read more: http://www.businessinsider.com/may-challenger-job-cuts-2012-5#ixzz1wRxXiavP