Non-farm payrolls disappointed today, while other indicators from the labor market report were roughly in line with market expectations. Job cuts amounted to 263,000 in September. Markets had expected an improvement from August's 201,000 (revised from 216,000) to 175,000. In the sector transport, trade and utilities and in public services, job cuts increased significantly, although the latter has no indicative value for the economy. In the field of education and health care, job gains were considerably lower in September than in August. Other sectors showed an improvement, even if this only meant less cuts. The unemployment rate, on the other hand, increased from 9.7% to 9.8%, as markets had estimated. Average hourly earnings increased by 0.1% over the previous month, half the rate markets forecasted. However, the respective August data was revised upwards from 0.3% to 0.4%. Average weekly working hours decreased marginally from 33.1 to 33 hours.Markets reacted to the overall disappointing news with a renewed yield drop and dollar gains. However, these movements were short-lived. After the rally during the last few days, Treasuries reached levels that obviously made investors reluctant to buy further. 10Y Treasuries currently yield the same as they did in May. Even taking into account today's labor market report, we still see Treasuries as considerably overvalued, as we believe that - eventually - the labor market will continue its recovery, albeit at a slow rate.