Disappointing September Jobs Number Sends Interest Rates Lower

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September's job report was disappointing across the board and the news is sending bond yields sharply lower this morning. 200,000 jobs were expected in the report but only 142,000 were created in September. August payroll and July payroll numbers were also revised lower, adding to the downward pressure on rates.

10 year bond yields are back below 2.00 percent, the first time in many weeks. 10 year bond yields are trading at 1.94 percent this morning, down 12 basis points from yesterday's close.

It was widely assumed the Federal Reserve would increase the federal funds rate sometime in 2015. Fed funds futures are now pricing in a rate hike in March 2016. While this is good news for lower mortgage rates, deposit rates will also remain low until a rate hike happens.

Author: Brian McKay
October 5th, 2015