Employment Comes in Very Hot!!
By: Tim McPartland,
Employment numbers for November came in very hot with over 300,000 jobs created–additionally there were sizable upward adjustments in last months numbers.
This number has been mostly ignored by the interest rate complex in the last 6 months–sometimes taking small bumps up after announcement and then drifting back down.
Key for today (and the year ahead) is do interest rates move up (at this momemt they are up 7-8 basis points) above 2.35% (on the 10 year) in the next couple of days and REMAIN higher instead of drifting back down. Rates have been trapped in the range of 2.10% to 2.35% for a couple of months. This could ‘test’ the mettle of preferreds, exchange traded debt and REITs to stay at near record high levels.