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^DowJones 02/07/97 07:12 CST
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DJ: Credit Markets: Treasurys Higher, Long Bond Up 5/32 At 6.74%
NEW YORK -(Dow Jones)- Treasurys were slightly higher Friday morning ahead
of the release of January employment data.
At about 8 a.m. EST, the long bond was up 5/32 at 96 27/32 to yield 6.74%.
The 10-year note was up 3/32 at 100 11/32, to yield 6.44%.
Three-month bills were unchanged at 4.99 to yield 5.11%.
Federal funds were at 5 1/8%.
The Labor Department is due to release the January jobs data at 8:30 a.m.
EST. A Dow Jones survey of 17 economists found a mean estimate for a 246,000
rise in non-farm payrolls, with most estimates between 150,000 and 350,000. The
average job gain in the previous three months was 217,000.
The unemployment rate, which was 5.3% in December, isn't expected to change.
Traders will also check for signs of inflation in the report on average
hourly earnings. Earnings rose six cents to $12.05 in December but are
generally expected to show no change in January.
"The reports people will be looking at are hourly earnings and also the
average workweek - people are viewing that as an indication of potential
inflation or wage inflation," said Bernie Jensen, head of trading at Fuji
Securities Inc. in New York. "The Fed... seems content with allowing theeconomy
to grow as long as there's no signs of inflation."
Jensen said the market expects an average workweek of 34.7 hours, which
would be a slight decline from 34.8 in December.
Other economic data due out Friday include the Commerce Department report on
December wholesale sales at 10 a.m. EST, and the Federal Reserve's December
consumer credit figures, due at 3 p.m. EST.
Trading in Treasurys was stagnant Thursday and overnight in Asia and Europe
as market participants awaited the report.
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