Happy Friday everyone! It is June 5 and the market is up big after May sees a record surge in U.S. jobs. Treasury yields have also jumped after a better-than-expected jobs report. We also see that the government’s mortgage bailout tally has shrunk for the first time since the coronavirus hit and are reading what you need to know about your 401(k) if you are laid off. We hope everyone has a great weekend and will be back on Monday!
The Dow Jones Industrial Average rallied on Friday after the latest U.S. jobs report raised hope the economy is starting to recover from the coronavirus pandemic.
Employment stunningly rose by 2.5 million in May and the jobless rate declined to 13.3%, according to data Friday from the Labor Department that was far better than economists had been expecting and indicated that an economic turnaround could be close at hand.
Treasury yields surged on Friday after jobs data for May blew past expectations. The yield on the benchmark 10-year Treasury note popped 11 basis points to 0.926%, the highest level since March 24. The yield on the 30-year Treasury bond also jumped about 10 basis points to 1.723%.
Fewer borrowers are now in mortgage relief programs that allow them to delay their monthly payments due to the coronavirus crisis. The mortgage market, however, is not out of the woods yet.
If you’ve taken out a loan against your 401(k) savings account and lose your job, it could generate an unexpected tax bill. While recent economic rescue legislation provided some relief for coronavirus-related 401(k) loans, they still are subject to certain existing rules when you separate from your company, whether by choice or not. And that borrowed money could morph into a taxable distribution that comes with an early withdrawal penalty.