THE BASIS POINT

Rates Up After ECB announcement & ADP Jobs Report

The ECB announced a rather aggressive bond buying program (FT story) aimed at keeping borrowing costs low for the nations facing serious fiscal crises.  This caused a big equity rally and saw Treasury and mortgage (MBS) selling which is pushing rates up this morning.

Julian’s rate lock advisory from Saturday worked for those who were listening.

Below is today’s U.S. jobs data…

Jobless Claims (week ended 9/1/2012)
– New Claims  365,000.  Previous was 374,000, revised to 377,000
– Lowest level in a month
– Claims are 13K above their post-recession low of 352K
– 4-week Moving Average 370,250.  Previous was 371,250

ADP Employment Report (August 2012)
– ADP Private Jobs +201,000 and previous was revised upward by 10,000
Full report & charts

At present this will be regarded as a positive jobs report and a sign of a healthier than last month BLS employment Report tomorrow. Here’s a good jobs report preview from CalculatedRisk.