Highest Yields in Months. Could Jobs Report Make it Worse?

After a somewhat hopeful bounce in yesterday's trading session, and a decent overnight session, Thursday ended up being a bad day. With the jobs report on deck tomorrow, could things get even worse?  That's always a possibility, but it wouldn't necessarily have to do with whether or not the jobs report is stronger or weaker than expected.  Either way, and no matter what happens tomorrow, the path of least resistance is clearly toward higher rates.  

Econ Data / Events

  • Fed MBS Buying 10am, 1130am, 1pm

  • Jobless Claims 326k vs 348k f'cast, 364k prev

Market Movement Recap
08:40 AM

Decent overnight session with bonds making it to US hours unchanged.  Weaker since then.  Data not helping.  10yr up 1.4bps to 1.542.  MBS down nearly an eighth.

12:00 PM

Slow burn continues.  Treasuries at weakest levels, up 3.4bps at 1.562.  MBS down an eighth.

02:37 PM

New lows for the day in MBS and new highs in 10yr yields.  No new market movers, just ongoing momentum.  10yr up 4bps at 1.57%.  MBS down 6 ticks (.19).