BIG DAY!!! 7/7/2017
MBS are down -1/32 (FNMA 30-yr 3.5 at 102.13), around 1/32 lower than yesterday at this time.
Solid job gains were offset by a shortfall in wage growth in today’s Employment Report, leaving MBS prices nearly unchanged. Against a consensus forecast of 175K, the economy added 222K jobs in June. In addition, upward revisions added 47K jobs to the results for prior months. The unemployment rate increased from 4.3% to 4.4%, above the consensus for a flat reading of 4.3%, mostly due to workers entering the labor force. Average hourly earnings, an indicator of wage growth, fell a little short of expectations. They were 2.5% higher than a year ago, up from a downwardly revised 2.4% last month. The Dow is up 50 points. No more economic data will be released today.