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Mortgage rates rise on favorable jobs report

Fed may hike up key funds rate as soon as summer

Mortgage rates are quickly approaching 6 percent on news that Clouseaus at the Department of Labor have discovered previously suspected but invisible jobs. Lots of them: January and February reports combined to miss 107,000 jobs now found, and 308,000 in March. That last number may be as high-side wrong as the first-reported 21,000 in February was on the low side, but the credit markets must assume that March and the prior-month revisions are correct, and that the Fed's patience will soon be exhausted, and then run for cover. Running they are. Sprinting. One week ago yesterday, the yield on the 10-year T-note was 3.73 percent. At noon today, still deteriorating: 4.15 percent. The long end usually blows up worse than the short end, but not in this move, or ones now likely to follow; one week ago yesterday, the 5-year T-note yielded 2.65 percent; today, 3.14 percent. Short rates are directly tied to the Fed, and long-term ones only by inference; there is an excellent chance that sho...

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