Employment Situation
Tomorrow brings us the release of the almighty monthly Employment. It will give us details about the employment sector, such as April’s unemployment rate, the number of jobs added to the economy during the month and earnings data. This is an extremely influential report for the financial and mortgage markets. It is expected to show that the unemployment rate held at 4.2% and that approximately 130,000 jobs were added during the month, while earnings rose 0.3%. A higher unemployment rate and a much smaller increase in the payroll and earnings numbers would be good news for bonds and rates because they would signal weaker than thought conditions in the employment sector of the economy. Stronger than expected results will probably lead to bond selling, possibly causing a sizable increase in mortgage pricing tomorrow.