98K new jobs created in March, well below the 180K expected

April 7th, 2017

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.

1:08 PM Fed's Dudley's words pushed Bond prices lower, yields higher.
1:06 PM Fed's Dudley says that he expects to begin reducing balance sheet later this year or next year.
1:02 PM At midday, MBS plunge from session highs! S&P flat. 10-yr yield rises to 2.36% from the early low of 2.26%.
1:00 PM Fresh session lows for MBS.
12:40 PM MBS hover near session lows trading unchanged.
12:40 PM The S&P trades near the flatline.
12:40 PM Despite the weak jobs data, the 10-yr T Note yield edges higher to 2.33%.
10:29 AM The Monthly Bond Rollover will take place after the close of trading this evening.
9:49 AM MBS now bounce off session lows.
9:47 AM The New York Fed will purchase up to $1.275B in Fannie/Freddie 30-yr 3.5% and 4% coupons beginning at 11:15 a.m. ET.
9:44 AM The S&P trades to unchanged levels.
9:41 AM A truck has driven into a department store in in the capital of Stockholm, could be terror related. Swedish police said a number of people injured, three could be dead.
9:30 AM Stocks open lower.
9:20 AM MBS quickly lose their shine after the weak jobs report and are trading near unchanged, having given up most of their post-jobs data gains.

 

9:09 AM Pre jobs data the 10-yr yield was 2.31%, then hit 2.26% after the weak numbers, now back at 2.31%.
8:54 AM S&P futures turn modestly negative.

8:51 AM  3.5% Fannie Mae 30-yr coupon up 16  bp at a price of 102.81 up 19 bp when rates were set yesterday at 10:00 am Open 102.75 High 103.06 Low 102.75 (Over $102.72) R2

8:50 AM MBS now off best levels of the session.

8:41 AM The Labor Force Participation Rate, or the share of American Americans over the age of 16 who are working or looking for a job, remained at 63%.
8:40 AM January Job growth revised lower from 238K to 216K.
8:36 AM February jobs revised lower to 219K from 235K.
8:34 AM The Unemployment Rate declines to 4.5% from 4.7%.
8:33 AM Average hourly earnings 0.2% vs 0.3% expected.
8:31 AM MBS push higher after the weak data.
8:30 AM 98K new jobs created in March, well below the 180K expected.
8:27 AM Tick, tick tick, ... jobs data imminent.
8:18 AM MBS open higher but that can all change when the jobs numbers are released at 8:30.
8:08 AM U.S. dollar index 100.74, +0.17.
8:05 AM WTI oil $52.14/barrel, +$0.45.
8:02 AM Ahead of the release, the 10-yr T Note yield has fallen to 2.31%, the lowest level since November.
7:58 AM MBS look to open flat to modestly higher ahead of the 8:30 a.m. ET release of the March Jobs Report where it is expected that employers added 180K new workers.
7:57 AM S&P futures fell late last night after the news of the strike, but have recovered this morning and are now near unchanged.
7:55 AM The U.S. launched a missile strike on Syria last night, as officials described as a one-off attack that would not lead to wider escalation.

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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