Today brings us yet another mixed bag of news and one that the market has rallied some to retrace some of the earlier weeks losses.
With non farm payrolls improved over expectations by 11k (which is good) and helps support a "possible" fed rate hike later this month (that I am still betting will NOT happen) but the offset was the trade deficit grew yet again by over 3B.
Based on today's news the very oversold treasuries retraced losses and now the FNMA 3.0 is back up over 100 and currently sitting at 100.156
I don't think it will close much over 100 and should remain close to current levels throughout rest of the day.
For those wise enough to listen to me and held off on locking you likely regained appx 1/2% from earlier weeks lows. My advice today is, if you waited, to LOCK now.
Here is today's news and have a great weekend
Nonfarm Payrolls for November came in above expectations with a solid upward revision to October’s release. November Nonfarm Payrolls grew 211K (consensus 200K), and October was revised up from 271K to 298K. The Unemployment Rate held at 5.00% MoM. Average Hourly Earnings rose 0.20% in November, and Earnings are up 2.30% YoY vs. 2.50% prior. The Labor Force Participation Rate edged up to 62.50% vs. 62.40%. The October trade deficit increased to $43.89 B from $40.81 B in September. This morning’s strong payrolls report coupled with the Fed’s desire to raise rates points to a likely hike this December. Treasuries initially dipped following the payrolls release and have been continuing to recover this morning. The curve has flattened with 2s10s