1/8/10

Overnight we saw rates move a little higher after underperforming yesterday. But then this morning’s unemployment data came in showing that the U.S. unexpectedly lost 85,000 jobs in December (expected unchanged) versus revisions showed payrolls increased the prior month for the first time in almost two years. The headline Unemployment Rate held at 10 percent. So basically the recession may be technically over, but companies are still cautious about making permanent additions to their ranks. The average work week held at 32.2 hours in December, while average weekly earnings rose to $624.16 (up 2.2%). In other news, we still have Wholesale Inventories at 7AM PST, along with a bevy of Fed speakers. There weren’t many fireworks after the number: mortgages rate are just slightly improved from yesterday.