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Jobs Report: Rates Lower

This mornings job report expected an additional 200,000 jobs but the economy added only 74,000. While the unemployment rate fell to 6.7% from 7% because the participation rate fell from 63% to 62.8%.  This is the lowest participation number in over 30 years.

The poor headline number of 74,000 encourages the federal reserve to keep buying bonds and this buying of bonds keep rates lower.  Keep an eye out for Federal Reserve reaction to this unemployment report as they could use the 74,000 as a reason to keep buying at the same pace or point to the 6.7% unemployment rate as a reason to taper buying.

 

10 year treasury rate chart over a 5 day period

5 day 10 yr treasury chart jan 10

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