Market Analysis

Bonds are under pressure this morning as January's Non Farm Payroll report and the January Institute of Supply Management (ISM) Services Sector index both came in stronger than expected.

The big news of the day was the January Employment report.  Payrolls were up 243,000 vs an expected 155,000.  Private Sector Payrolls were up 257,000 vs an expected 168,000 increase.  Public Sector Payrolls were down 14,000 which almost matched the 13,000 decline expected.  The US Unemployment Rate dropped from 8.5% to 8.3%.  Analysts had been expecting no change in the unemployment rate.

Separately, the January ISM Services Sector index came in at 56.8 vs an expected 53.1. December Factory Orders were up 1.1% vs an expected 1.5% increase.