The
unemployment rate declined from 7.3 percent to 7.0 percent in November, and total nonfarm
payroll employment rose by 203,000. Job growth averaged 195,000 per month over
the prior 12 months. In November, job gains occurred in transportation and
warehousing, health care, and manufacturing. The
change in total nonfarm payroll employment for September was revised from
+163,000 to +175,000, and the change for October was revised from +204,000 to
+200,000.
What is the impact of a very good employment report overall; the
reaction sent the stock market higher, the initial reaction in the bond market
sent the 10 yr note to 2.93% for a brief moment before retreating to about
unchanged on the day. Most every key economic release in the last few
weeks has been better than forecasts, the rate markets this week have moved
higher in anticipation the Fed will begin tapering; Don’t expect any major improvement in
the rate markets, the bond and mortgage markets are still bearish and over time
rates will continue to increase.
