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A Message from The Arizona Loan Baron:

"The monthly Non-Farm Payrolls (NFP) report, aka " the jobs report" came out this morning. The numbers were a little weaker than expectations, but still solid. Little effect on bond markets and mortgage rates so far."
Bonds Not Keen to Rally on Weaker-But-Decent NFP
  • Nonfarm Payrolls
    • 155k vs 200k forecast
    • 237k vs 250k (revision of previous month)
  • Unemployment
    • 3.7% vs 3.7% forecast
    • 7.6 vs 7.4% (U-6 unemployment vs previous reading)
  • Wages
    • 0.2 vs 0.3 forecast
    • 0.1 vs 0.2 previously (revision to last month)
    • 3.1% vs 3.1% year-over-year

Quite an underwhelming response so far with bonds rallying modestly in response but already having made their first bounce back toward opening levels.  Treasuries and MBS are effectively unchanged at the moment.  

An underwhelming response isn't shocking, however, considering the amount of ground we've covered in recent days combined with the fact that this is, by no means, a bad NFP report--certainly not bad enough to say the economy is doomed to immediate correction.

MBS / Treasury Market Data

FNMA 3.5
98.72
-0.02
FNMA 4.0
101.03
-0.03
FNMA 4.5
103.03
-0.05
2 YR
2.7370
-0.0250
10 YR
2.8950
-0.0180
Pricing as of: 12/14 5:05PM EST
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