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Mortgage Industry News
Unemployement Change Better Than Expected
01/05/2012
Treasury prices improved modestly overnight after a disappointing French debt auction spooked markets. However, prices are retracing their steps this morning as a much stronger than expected ADP employment change of +325k (estimate of +178k) has treasuries under pressure. The weekly jobless claims report was mixed as initial claims were lower than expectations but continuing claims were slightly higher. The economic calendar culminates tomorrow as all eyes will be on the Dec non-farm payrolls report to see if the recent trend of improved economic data continues. Currently, the 10 year yield is at 2.007% (1.946% Wednesday) and the 2-10 yield spread is at 174bps, 5 bps steeper since yesterday morning.
