MBS ALERT: Post Data Release Reactions

The BLS reported that the US economy shed 539,000 jobs in April, the smallest number of jobs losses since October 2008 and better than the market expectations for 590,000 job losses. The unemployment rate rose from 8.5% to 8.9% and the hourly work week held constant (as usual) at 33.2 hours. The number of unemployed persons in the US is now 13.7 million.

After the release the oversold 10yr note yield fell from 3.36% to 3.28%. The steepness of the yield curve, as measured by 2s/10s, moved from 235 to 230 bps. Helping fixed income was the revision to the March data from 663,000 jobs losses to 699,000.

Stock Futures, which were strong ahead of the data release, are only slightly higher post release.

Here was the reaction from the FN 4.0...

Since 5pm "Going Out" Marks....

FN30________________________________

FN 4.0 -------->>>> -0-02  to 99-17    from 99-19

FN 4.5 -------->>>> -0-02  to 101-14  from 101-16

FN 5.0 -------->>>> -0-03  to 102-16  from 102-19

FN 5.5 -------->>>> -0-02  to 103-12  from 103-14

FN 6.0 -------->>>> -0-01  to 104-19  from 104-20

GN30________________________________ 

GN 4.0 -------->>>> -0-02  to 99-19    from 99-21

GN 4.5 -------->>>> -0-03  to 101-21  from 101-24

GN 5.0 -------->>>> -0-03  to 103-05  from 103-08

GN 5.5 -------->>>> -0-03  to 103-23  from 103-26

GN 6.0 -------->>>> -0-01  to 104-13  from 104-14