Nov Non-Farm Payrolls: 11,000 Jobs Lost. Best read since December 2007 when it printed +120,000
MUCH BETTER THAN CONSENSUS -130,000. 100,000 less than the REVISED FOR THE BETTER OCTOBER PRINT OF -111,000 (prev -190,000)
Nov Unemployment Rate: 10.0%
0.2% better than expected. 0.02% better than October
Sept NFP revised to -139,000 from -219,000
Rates are higher after the data....
After finding a comfortable spot directly in the middle of the range ahead of the data, the 10yr is now testing the upper limits of the range. -0-26 at 99-06 yielding 3.472. The yield curve is FLATTER.
Just to give you an idea on how much the market is getting punished at the moment, here is my trade log for the March 10yr TSY contract. Notice how much the size of trades picked up at 830. All sell side too, all distribution. Not so good...this puts a firm layer of positional resistance at 3.38%.
The FN 4.0 is -0-07 at 99-01 yielding 4.103% and the FN 4.5 is -0-08 AT 101-19 yielding 4.305%. The secondary market current coupon moved up 6bps to 4.204%. Yield spreads are unchanged/tighter.