MBS OPEN: Jobless Claims Data Pushes Rates Lower
ByPosted To: MBS Commentary
Good Morning All. Yields are lower this morning following a worse than expected read on the labor market. JOBLESS CLAIMS ROSE TO 480,000. HIGHER THAN CONSENSUS 465,000. UP FROM PRIOR WEEK 473,000 JOBLESS CLAIMS 4-WK AVG FELL TO 467,500 FROM 472,750 PRIOR US CONTINUED CLAIMS ROSE TO 5.186 MLN. HIGHER THAN CONSENSUS 5.15 MLN. UP FROM PRIOR WEEK 5.181 MLN INSURED UNEMPLOYMENT RATE UNCH AT 3.9 PCT DEC 5 WK FROM 3.9 PCT PRIOR WK (PREV 3.9) JOBLESS CLAIMS 4-WK AVG LOWEST SINCE 460,250 IN SEPT 20, 2008 WEEK After the release, 10s recovered all of yesterday's post FOMC knee jerk move higher. 10s are heading back towards 3.50%…in VERY LIGHT VOLUME. This is most likely a function of SHORT COVERING after the data. Again, illiquid trading conditions can create a false sense of security, don't…(read more)