Stronger than expected...

Mortgage bond prices opened lower Thursday morning following stronger than expected economic data.

In news released this morning, the ADP payroll report showed the US economy added 176K private sector jobs last month. Analysts were expecting the ADP report to show 105K jobs. That data was much higher than expected.

Weekly jobless claims printed at 374K and continuing claims, a summation of all receiving benefits, at 3,306K. Expectations were for weekly claims to fall 1K to 385K and continuing claims to 13K to 3,283K.

The data released this morning was better than expected and not bond friendly.

Traders are now waiting for stocks to begin trade at 9:30 am ET. Currently Dow futures indicate a flat open.

Tomorrow brings the monthly jobs report for the Bureau of Labor Statistics (BLS). Trading volumes are thin with many senior traders still on vacation. Let your floating borrowers know tomorrow brings the single most important economic event of the month.

Central banks around the globe cut lending rates and used other tools to spur economic growth. The People’s Bank of China lowered interest rates for the second time in a month. The European Central Bank cut lending rates by .25% to a historic low of .75%. In England, the Bank of England left rates unchanged however they increased its bond-buying program (QE) by 50B pounds. Looks like QE3 is in the wings.