Hi Chip, thanks..... with the big number tomorrow, here is
a chart of the unemployment rate and hourly earnings for the
past decade.
geocities.com
and nonfarm payrolls
geocities.com
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-----15:05 ET
30-year: -22/32..5.904%....GNMAs: -7/32....$-¥: 107.46
Treasury Summary: A fairly busy session for Treasuries, as thoughts of some payback for an aberrant May employment report loomed large ahead of tomorrow’s release of June nonfarm payrolls. Treasuries took a hit overnight with good selling reported at the front of the curve, while Asian and European accounts were said to be selling in the belly. Of interest, European accounts were seen moving out of 10-year Treasuries and into German bunds.
The negative tone carried over into US trading, with a rebound in oil also weighing on the market. Talk of a good-sized (rumored at $1.6 bln) collateralized mortgage obligation bid list generated some better hedging in Treasuries, while stronger than expected May factory orders (+4.1%, largest increase since December of 1992) also proved to be a drag. The market managed to find some relief as oil reversed course, coming under renewed pressure with Reuters reporting that the Saudis would increase output in the next few days.
However, the impact from another sell-off in oil was somewhat muted as stocks managed to move off their worst levels for the session. Accounts were also said to be lightening up positions ahead of tomorrow’s data, not surprising when considering the recent enthusiasm in the market. The rebound in stocks, dollar strength and reversal in oil helped to foster a modest curve flattening bias, though it was not interpreted as a threat to the recent trend towards disinversion. Good two way flows were reported throughout the session in the September 5-year sector. The active 5-year cash issue outperformed the rest of the curve as it tightened up again in repo.
The September T-bond closed 17 ticks lower at 97-06, while the September 10-year note closed 12.5 ticks lower at 98-17.5.
The 2/30 spread flattened slightly to -42 bp.
Volume came in at $33 bln on GovPX at the 15 ET futures close. --------- |
