More on the market off today

MBS  -10/32 @ 100.13         10 Yr Treasury  -15/32 @ 2.1340           +180@ 15221

 

Today's Employment data was right in line with expectations, but MBS moved significantly lower after the results. Against a consensus forecast of 165K, the economy added 175K jobs in May. There were slight downward revisions to the figures from prior months. The Unemployment Rate unexpectedly increased to 7.6% from 7.5%, but this was entirely due to additional people entering the labor force. As a reminder, the Unemployment Rate measures the percentage of people who want to work but are unable to find a job. If the number of jobs holds steady, and more people decide that they want to work, the Unemployment Rate goes up. Average Hourly Earnings, a proxy for wage growth, was unchanged from last month, below the consensus for an increase of 0.2%. In short, investors were positioned for weaker data. When the results came in right on target, MBS gave back yesterday's gains. No more economic data will be released today.

 

 

Top of Form Treasuries
7-Jun-13 Last Change 3-Month T-Bill 0.04% 0.00% 6-Month T-Bill 0.08% 0.01% 1-Year T-Bill 0.13% 0.00% 2-Year Note 0.29% 0.00% 3-Year Note 0.48% 0.01% 5-Year Note 1.04% 0.03% 10-Year Note 2.12% 0.05% 30-Year Bond 3.29% 0.05%

 

Top of Form Major Indices
7-Jun-13 Last Change 11th District COFI 0.970% 0.003% 1-Month LIBOR 0.192% -0.001% 6-Month LIBOR 0.410% 0.000% 12-Month LIBOR 0.685% 0.000% MTA Index 0.163% -0.006% Prime Rate 3.25% 0.00% Federal Funds Rate 0.25% 0.00% Discount Rate 0.75% 0.00%

 

Top of Form Mortgage Rates
7-Jun-13 Last Change 15-Year Fixed Freddie 3.03% 0.05% 30-Year Fixed Freddie 3.91% 0.10% 1-Year ARM Freddie 2.58% 0.04% 5/1-Year ARM Freddie 2.74% 0.08%

 

 

APOR

30 Yr Fixed- 3.91%

5/1 ARM -     2.74%

 

Economic Calendar
	Event	Actual	Cons.	Previous
Jun 02	Fed's Bernanke Speech
	FOMC Member Yellen Speech
Jun 03	FOMC Member Williams speech
	Markit Manufacturing PMI (May)	52.3	52.0	52.1
	Construction Spending (MoM) (Apr)	0.4%	0.8%	-0.8%Revised from -1.7%
	ISM Manufacturing PMI (May)	49.0	50.5	50.7
	ISM Prices Paid (May)	49.5	49.7	50.0
	6-Month Bill Auction			0.08%
	3-Month Bill Auction			0.045%
	Total Vehicle Sales (May)		15.10M	14.88M
Jun 04	Trade Balance (Apr)		$-41.0B	$-38.8B
	Redbook index (MoM) (May 26)			0.6%
	Redbook index (YoY) (May 26)			2.7%
	ISM New York index (May)			58.3
	IBD/TIPP Economic Optimism (MoM) (Jun)			45.1
	4-Week Bill Auction			0.03%
	Fed's George Speech
	Fed's Richard Fisher's speech
Jun 05	MBA Mortgage Applications (May 31)			-8.8%
	ADP Employment Change (May)		170K	119K
	Nonfarm Productivity (Q1)		0.7%	-1.7%
	Unit Labor Costs (Q1)		0.5%	4.4%
	Factory Orders (MoM) (Apr)		1.4%	-4.0%
	ISM Non-Manufacturing PMI (May)		53.5	53.1
	EIA Crude Oil Stocks change (May 31)			3M
	Fed's Beige Book
Jun 06	Challenger Job Cuts (YoY) (May)			38.121K
	Philadelphia Fed's Plosser speech
	Initial Jobless Claims (Jun 1)		345K	354K
	Continuing Jobless Claims (May 25)			2.986M
	EIA Natural Gas Storage change (May 31)			88B
Jun 07	Nonfarm Payrolls (May)		168K	165K
	Average Hourly Earnings (MoM) (May)		0.2%	0.2%
	Average Hourly Earnings (YoY) (May)		2.1%	1.9%
	Average Weekly Hours (May)		34.5	34.4
	Unemployment Rate (May)		7.5%	7.5%
	Consumer Credit Change (Apr)		$11.50B	$7.97B