Friday’s Department of Labor’s “Jobs” report looks set to have a significant impact, regardless of the results. If the number of jobs added in June is less than 150,000, look for the debt markets to calm down and lending rates to moderate towards what we had seen in May. If the jobs number rings in at 200,000, look for interest rates to spike and maintain their heightened level as the market reacts with conviction that the Fed will ease their buying of government securities. As for anything between 150,000 and 200,000 new jobs per month: look for the volatility in rates to continue until a trend line is established either downward towards 150,000 or upward towards 200,000.
While Friday may be a vacation day for many, you may want to take an “interest” in Friday’s Jobs report because it will impact interest rates going forward.