Report.  Citing job losses of 473K with the Unemployment Rate at 9.6%, the print was well above expectations.  Pending Home Sales were also released, squeaking out a .1% increase from the April figure.  With housing affordability at an all time high and 8K from Uncle for first time buyers, the improvement is meager at best.

Construction Spending really caught the market’s eye, falling .9% to the lowest rate in 5 years.  Market reaction has been all over the place with treasuries slipping and stocks gaining ground.  Stock gains are more the result of fresh cash entering a new month/quarter than anything else.  Bonds and mortgage backs lost their month end support like we talked about yesterday, slipping 10/32’s on the 10 year note (yield 3.57%) while mortgage backs are off 4/32’s from yesterday’s close.

Both instruments have been better and worse than the levels just mentioned.  Trading has started to stabilize, most likely treading water into the close due to the high profile jobs numbers in the morning (7:30 am cst).  Tomorrow’s volatility will be on steroids.