Tame Jobs Data Opens Door For Bonds to Stabilize

Rates were arguably oversold heading into today's jobs report, but certainly could have continued higher if NFP was much higher than expected.  Thankfully, it wasn't (187k vs 200k f'cast, and a downward revision to last month).  Still great numbers, but not enough to justify the defensive posture leading up to them.  Bonds spent the rest of the trading session correcting that posture.  Some of that correction could be short covering on a Friday.  Some could be a legitimate attempt to get into a more nimble position ahead of next week's CPI data.  Either way, we'll take it.  But we'll also be cautious about assuming we'll get too much more without additional supportive data.

Econ Data / Events
    • Nonfarm Payrolls
      • 187k vs 200k f'ast, 185k prev
    • Wages
      • 0.4 vs 0.3 f'cast, 0.4 prev
    • Unemployment Rate
      • 3.5 vs 3.6 f'cast/prev
    • Workweek
      • 34.3 vs 34.4 f'cast/prev
Market Movement Recap
09:09 AM

initially slightly weaker after jobs data, but bouncing back into stronger territory now.  10yr down 3 bps to 4.149 and MBS up a quarter point.

01:00 PM

Gains continue.  10yr down 10.9bps at 4.07.  MBS up more than half a point.

02:53 PM

Little change from the previous update.  MBS up 18 ticks (.56) and 10yr down 11.7bps at 4.062.

05:10 PM

MBS went out at the highs of the day, up 22 ticks (.69) and 10yr at the lows, down 13.7bps at 4.042.