Oct 5. Employment hangover

Oct 5.  Employment data was worse than expected -263k.  Workweek only 33 hours.  Not exactly the stuff of a strong recovery.

–Not a lot of news out in the early part of the week, but plenty of bonds to be sold, kicking off with ten year tips today ($7B). 3-yr, 10-yr and 30-yr total $71B. Non-mfg ISM expected 50.0 today from 48.4. 

–After the strong rally in interest rate futures on Thursday, Friday’s weaker than expected data was met with profit taking.  Curve steepened slightly in front of this week’s auctions.

–From Reuters: Consumer bankruptcies soared 41 percent in September from a year before and climbed from August, as high unemployment and the housing market crash took their toll, the American Bankruptcy Institute said on Friday. Also, “Although recent reports show that the erosion in the U.S. housing market might be easing, after dramatic declines in sales and prices, credit bureau Equifax Inc said recently that mortgage delinquencies accelerated in August to a record level.” 

–Also from Reuters: “The fiscal crisis hitting most U.S. states and cities is now adding to the country’s workforce woes, with more than 20 percent of the jobs the country lost last month coming from the government sector.”

–From CNNMoney:   “In 2009, roughly 47% of households, or 71 million, will not owe any federal income tax, according to estimates by the nonpartisan Tax Policy Center.”

–Interesting link/chart


Posted on October 5, 2009 at 4:55 am by alexmanzara · Permalink
In: Eurodollar Options

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