Friday, July 6, 2012

Only Rose 80k

Mortgage bond prices opened higher Friday morning adding to the gains seen Thursday afternoon.

In news released this morning, non-farm payrolls rose 80K and the unemployment rate stood at 8.2%. Analysts’ expectations were for the US economy to add 100K new jobs and the unemployment rate to stand at 8.2%. That data was weaker than expected and bond friendly.

Traders are now waiting for stocks to begin trade at 9:30 am ET.

Things were quiet in Europe overnight. Governments in the region continue to move forward with a more pro-growth stance than in the past. The strict austerity demanded of the PIGS has only caused their respective economies to spiral downward. Unemployment in Greece and Spain is north of 20%, near 50% for the younger workers. High unemployment can be devastating from a fiscal and social perspective. Everyone loses when an unemployed person has his or her house taken by a bank.

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