June 1, 2023 – Economic News

• June 1, 2023
• realestatelife
• Business & Markets, Fed, Interest Rates, Politics & Economy, Rates, Real Estate, Real Estate Finance, Recession, World News, Your Real Estate Life

MBS OVERVIEW

4:00 EST – Our benchmark FNMA MBS 6.00 June Coupon is up +20 BPS with 60 minutes left to trade.

Domestic Flavor:

Rosie the Riveter: The 1st QTR Non Farm Productivity was revised higher vs its original release, -2.1% vs -2.7%. Unit Labor Costs were revised downward materially, from 6.3% down to 4.2%. The May ISM Manufacturing PMI was very weak and inline with expectations (46.9 vs est of 47.0). Prices Paid dropped (Anti inflationary) 44.2 vs est of 52. Employment did improve with a reading of 51.4 vs est of 49.8

Jobs, Jobs, Jobs: The May Challenger Job Cuts report showed an increase of 13K layoffs compared to April. The May ADP Employment Change was much stronger than expected, up 278K vs est of 170K, however it showed slowing wage growth. Initial Weekly Jobless Claims were lighter than expected, 232K vs est of 235K. The more closely watched 4 week moving average moved lower to 229K. Continuing Claims remained high though, 1.795M vs est of 1.800M.

Bob the Builder: April Construction Spending was much stronger than expected, up 1.2% vs est of 0.2%

The Talking Fed: Former Fed President Dudley said he expects the Fed to pause at their next meeting and so did Philly Fed President Harker. On Deck for Tomorrow: Big Jobs Friday! Non Farm Payrolls, Unemployment Rate, Average Hourly Earnings, U6 Underemployment Rate, Participation Rate, Average Weekly Hours.