Market Analysis

US Treasury Notes are slightly improved and mortgage-backed securities are relatively flat today despite a better than expected Dec 2011 Non Farm Payroll Report.  Concerns about Europe continue to provide a backstop on selling pressure in bonds despite better economic data here in the US.

Non Farm Payrolls increased by 200,000 vs an expected 150,000.  The Private Sector added 212,000 vs an expected 170,000 gain and the Public Sector shed 12,000 vs and expected drop of 20,000.  The National Unemployment Rate dropped to 8.5% vs an expected increase to 8.7%.