Logical Outcome For Bonds. Still Waiting on Data to Tell a New Story

Abstract

Still Waiting on Data to Tell a New Story The jobs report came in just slightly above expectations in terms of the payroll count and convincingly lower in terms of the unemployment rate. Markets traded accordingly with rates making a measured move up to the highest levels of the week. Treasuries sideways to slightly weaker in the overnight session, now selling more sharply after NFP. MBS down half a point and 10yr yields up 5.6bps at 3.883. MBS would be doing a bit better if they were liquid Pushing back a bit, fairly steadily after this morning's weakness. 10yr now up only 2.7bps at 3.855 and MBS down "Only" 7 ticks. Stocks remain unhappy with S&P futures bouncing along the lows, down more than 2%. Friendly mid-day bounce stalling out at the 3.85% resistance level in 10yr yields. MBS bounced lower after coming within an eighth of a point of unchanged.