rates off as jobs report shows bigger improvement

MBS -15/32 @ 104.05    10 Yr Treasury  -30/32 @ 1.7290      DOW +171@ 15,002

MBS began the session very close to yesterday's closing levels and dropped swiftly after the release of the Employment report. Against a consensus forecast of 155K, the economy added 165K jobs in April. The bigger news was that the figures for February and March were revised higher by 114K. With the revisions, the economy added an average of more than 200K jobs per month during the first quarter. The Unemployment Rate unexpectedly declined to 7.5% from 7.6%. Average Hourly Earnings, a proxy for wage growth, rose 0.2% from last month, matching the consensus. Overall, today's data was significantly stronger than expected, sending MBS lower. April Non-Manufacturing ISM Report On Business NMI at 53.1% Business Activity Index at 55% New Orders Index at 54.5% Employment Index at 52%

Economic activity in the non-manufacturing sector grew in April for the 40th consecutive month, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business.

 Orders to U.S. factories fell in March by the largest amount in seven months but a key category that signals business investment plans managed a small increase.

Factory orders dropped 4 percent in March, reflecting a big plunge in the volatile category of commercial aircraft, the Commerce Department reported Friday. Orders had been up 1.9 percent in February. Orders in a category considered a proxy for business investment plans rose 0.9 percent, a modest gain but an improvement from a preliminary report last week that had shown a decline.