Morning Report: Strong jobs report 8/5/16

Vital Statistics:

Last Change
S&P Futures 2179.0 14.0
Eurostoxx Index 341.0 3.0
Oil (WTI) 41.3 -0.6
US dollar index 87.0 -0.2
10 Year Govt Bond Yield 1.56%
Current Coupon Fannie Mae TBA 103.3
Current Coupon Ginnie Mae TBA 104.2
30 Year Fixed Rate Mortgage 3.52

Markets are higher after a stronger than expected jobs report. Bonds and MBS are down.

Jobs report data dump:

  • Nonfarm payrolls +255,000
  • Unemployment rate 4.9%
  • Labor Force Participation rate 62.8%
  • Average hourly earnings +0.3% (2.6% YOY)

Overall, a good report. Not sure it moves the needle with the Fed in September, but it looks like May’s super-weak report was an aberration. The underemployment rate increased however, which suggests that the long-term unemployed may be coming back to the market, but they have to settle for part time jobs.

Bonds sold off on the report, with the 10 year yield up about 4 basis points, and the 2 year up 6.

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