Market wrap: nonfarm payrolls surprised us all - Westpac

Analysts at Westpac offered a market wrap from last week's eventful closing session in the US markets. 

Key Quotes:

"Global market sentiment: A surprisingly strong US payrolls report boosted US interest rates and the US dollar, as well as US equities (the S&P500 up 0.9% to a record high). Expectations of Fed rate hikes firmed.

Interest rates: US 10yr treasury yields rose from 1.49% to 1.59%, while US 2yr yields rose from 0.64% to 0.72%. Market pricing of the Fed funds rate firmed, now implying around a 30% chance of a rate hike in September, a 55% chance by December, and 100% by Sep 2017.

Currencies:  The US dollar index jumped in response to the payrolls data, later paring gains to close +0.5% on the day. EUR fell from 1.1160 to 1.1046, closing at 1.1086. USD/JPY rose from 101.04 to 102.06. AUD fell from 0.7660 to 0.7598, closing at 0.7619. NZD fell from 0.7215 to 0.7122. AUD/NZD rose from 1.0620 to 1.0680. "