Market Update 7/7/2016
MBS are down -2/32 (FNMA 30-yr 3.0 at 104.02), around 5/32 lower than yesterday at this time. Some unfavorable repricing was seen yesterday.
This morning, the ADP estimate for private sector job gains in June was 172K, above the consensus of 150K. Weekly Jobless Claims fell to 254K, below the consensus of 265K. Today’s stronger than expected labor market data suggests that the disappointing Employment report for May is unlikely to be followed by similarly weak reports in coming months. The Dow is up 50 points. No more economic data will be released today. The key Employment report will come out tomorrow.