Non Farm Payrolls

March 10th, 2017

Commentary at the close: 

MBS were able to rise today after four straight losing days as bargain hunters stepped in and shorts covered, which drove prices higher. This despite a robust Jobs Report for February where employers added 235K new workers. Stocks closed modestly higher. The Dow rose by 44.79 points to 20,902.98, the S&P 500 Index was up 7.73 points to 2,372.60, while the NASDAQ ended the week at 5,861.72, up 22.91 points. WTI oil ended at $48.49/barrel, -$0.80. 10-yr T Note yield 2.57%. Next week, the 2-day FOMC meeting will begin on Tuesday and ends Wednesday with the 2:00 p.m. ET release of the the monetary policy statement. A hike to the short-term Fed Funds Rate is essentially baked into the cake. In addiiton to the Fed meeting, economic data includes CPI, PPI, housing data and manufacturing numbers. Have a great weekend!

Today's Agenda:

Friday, March 10, 2017      
 ReportForEstimateActualPriorImpact
8:30:00 AMNo-Farm PayrollsFeb188K235K227KHigh
8:30:00 AMUnemployment RateFeb4.70%4.70%4.80%High
8:30:00 AMHourly EarningsFeb0.20%0.20%0.10%High
8:30:00 AMAverage Work WeekFeb34.434.434.4High

What Is Going On With Interest Rates?  #wigowir

 

 

Below is the news when it happened and the market’s reaction.  For a full view of the day start at the bottom and work your way up. If want to know what just happened start at the top. All Times are Eastern Standard Time.  When the price of Mortgage Backed Securities (MBS) goes down rates go up, and when the price goes up rates come down. Remember in the bond market Bad News is Good News and Good News is Bad news.

 

 

8:41 AM Average hourly pay rose 2.8% from February 2016 to February 2017, up from 2.6% in the prior month.

8:40 AM Stock futures add to gains after the positive jobs data.

8:38 AM Not much reaction to the jobs data as MBS remain near unchanged.

8:33 AM The Unemployment Rate 4.7% from 4.8%, Average Hourly Earnings 0.2%, both in line with estimates.

8:30 AM February Non-farm Payrolls +235K vs the 188K expected.

8:27 AM WTI oil at $49.57/barrel, +0.29.

8:25 AM 10-yr T Note yield 2.60%, unchanged.

8:25 AM U.S. dollar index 101.89, +0.04.

8:22 AM After last night's Bond Rollover, MBS open near unchanged.

8:22 AM S&P futures higher ahead of the jobs data.

8:20 AM The February Jobs Report will be released at 8:30 a.m. ET where it is expected that employers added 188K new workers.

8:18 AM Mortgage Bonds had their monthly coupon rollover after the close of trading last night with the effect being -22bp for the Fannie Mae 30-year 3.5% coupon.

Johnmarbury.com has attempted to verify the information contained on this post.  However any aspect of such may change without notice.  Johnmarbury.com does not provide investment advice and does not represent that any of the information or related analysis is accurate or complete at any time. On October 5th we started posting our rates and leaving them on the site for you to refer back to. This will allow  you see where actual rates have been along with the news that caused the fluctuations on the rate sheet.  I ask that you forgive my spelling and grammatical mistakes. This is due writing skills that are lacking and the need to communicate quickly.  Most of the information posted on this blog along with the charts and indexes are available all during the day to the subscrbers of www.themortgagemarketguide.com  The cost of subscription is very reasonable.

 

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