Unsurprising Weakness After Surprisingly Strong NFP, But Relatively Well Contained

The jobs number came in at 303k this morning versus a median forecast of 200k.  Previous month revisions added a minimal 22k to the 3 month total and unemployment ticked down to 3.8% from 3.9% last month.  Numbers like this demand a sacrifice from the bond market, and the bond market quickly acquiesced.  That said, if we were forced to guess at the size of the sacrifice, it would probably be bigger than the one we're actually seeing so far today.  In fact, bonds were almost back to pre-NFP levels by 10:30am and MBS have consistently traded a bit higher than yesterday's opening levels.  Bottom line: yes we're weaker, but it could be a lot worse.