Industry News
Mortgage Industry News
Nonfarm Payrolls Worse Than Expected
06/03/2011
Similar to ADP, Nonfarm Payrolls printed much worse than expectations, +54K vs. +165K median consensus; the unemployment rate ticked up to 9.1%; .U6 dropped a tenth to 15.8%. Despite the risk of being downgraded by Moody’s, Treasuries are rallying pretty strongly; stock futures and commodities are lower. MBS markets have given back part of the gains from the weaker than expected jobs data. Right now, the futures market is pricing in about a 93% chance that the Fed keeps rates between 0% and 0.25% through September 20th, 2011. Currently, the Ten Year yield is at 2.96% (2.99% yesterday) and the 2-10 yield spread is at 253bps, flattening 1bp since yesterday morning.
