Disappointing job numbers from both Canada and the U.S. today.
The Canadian economy lost nearly 46,000 jobs in December. The surprising decline pushed the unemployment rate to 7.2%, up from 6.9% in November. Most of the losses were full time jobs. Expectations were for a 14,000 increase.
In the U.S. job creation came in well below expectations with just 74,000 new positions added in December. Forecasts had called for 200,000 new jobs. It's a sharp reversal in the positive economic news that led the U.S. Fed to announce a pull-back in its bond buying program.
The unemployment rate in the U.S. dropped to 6.7%, down from 7% in November. Most of that decline will likely be pegged to a drop in the participation rate which slipped 0.2%.
North American markets opened higher, despite the employment let down.
Bond yields are down 7 - 8 bps. This should help to keep Mortgage interest rated down for the short term.