Daily Market Update 10/6/17

Rates moved higher Friday following the release of the September Employment Report.  The economy lost 33,000 jobs last month, well below the consensus forecast for an increase of 100,000, however job losses were mainly in the areas most affected by the hurricanes.  The unemployment rate fell to 4.2%, the lowest level since February 2001.  According to the Labor Department, the unemployment rate was not distorted by the storms.  Average Hourly Earnings jumped 0.5% and were 2.9% higher year-over-year, beating expectations.  Wage growth readings may have been affected by the hurricanes since many of the lost jobs were lower paying.  A stronger labor market could push wage inflation higher, hurting bonds and mortgage-backed securities.  No other key data will be released today.

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