Treasury Yields Lower after Disappointing Jobs Report
Market opened today’s session with treasuries remaining flat. 10-Yeartreasury yield is at 2.6393, unchanged from prior closing.
US equity futures extended decline after payrolls posted the weakest reading in more than a year. After the ECB announced its stimulus program, investors anxiously waited for today’s jobs report, seeking fresh clues on the state of the global economy. With the slowdown in hiring and the fast wage gains posted this morning, these may be an indication of labor market decelerating with inflation pressure picking up at the same time. There also have been other indications that pointed toward slower global economy. China reported its exports slumping 21.00% in February and German factory orders fell 2.60% in January which add to concerns that the US trade policy may have done some permanent damage to the global economy.
The highly anticipated change in Nonfarm Payrolls in February surprisingly fell to 20k from 311k revised prior, marking the weakest American hiring since September 2017. Housing Starts, on the other hand, bounced back to 1230k from 1037k revised prior vs. 1195k consensus. Building Permits also increased to 1345k from 1326k prior. Unemployment Rate edged lower to 3.80% from 4.00% prior vs. 3.90% consensus despite of the weak payrolls. Fed Chair Powell will discuss monetary policy normalization and review at the Stanford Institute for Economic Policy Research at 7:00 PM (PT) today.
The curve has steepened with UST10-Year yield unchanged.
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US equity futures extended decline after payrolls posted the weakest reading in more than a year. After the ECB announced its stimulus program, investors anxiously waited for today’s jobs report, seeking fresh clues on the state of the global economy. With the slowdown in hiring and the fast wage gains posted this morning, these may be an indication of labor market decelerating with inflation pressure picking up at the same time. There also have been other indications that pointed toward slower global economy. China reported its exports slumping 21.00% in February and German factory orders fell 2.60% in January which add to concerns that the US trade policy may have done some permanent damage to the global economy.
The highly anticipated change in Nonfarm Payrolls in February surprisingly fell to 20k from 311k revised prior, marking the weakest American hiring since September 2017. Housing Starts, on the other hand, bounced back to 1230k from 1037k revised prior vs. 1195k consensus. Building Permits also increased to 1345k from 1326k prior. Unemployment Rate edged lower to 3.80% from 4.00% prior vs. 3.90% consensus despite of the weak payrolls. Fed Chair Powell will discuss monetary policy normalization and review at the Stanford Institute for Economic Policy Research at 7:00 PM (PT) today.
The curve has steepened with UST 10-Year yield unchanged.