MBS Live Recap: Do Bonds Care About Jobs Data Again?

Abstract

Do Bonds Care About Jobs Data Again? Yesterday it was the ISM Manufacturing data that moved the bond market. Today, even though there wasn't much movement, the AM jobs data arguably prevented some weakness. Today's video discusses why this transition might be happening with the help of "Real" bond yields. Fed MBS Buying 10am, 11:30am, 1pm Jobless Claims 200k s 210k f'cast, 247k prevLabor Costs 12.6 vs 11.6 f'cast, 11.6 prevADP Employment 128k vs 300k f'cast, 202k prev Almost perfectly flat overnight and modestly stronger over the past few hours. 10yr down 1.5bps at 2.897 and MBS starting the day up 3 ticks at 99-24. 10yr now roughly unchanged and MBS once again 3 ticks higher on the day. Steady gains in MBS with 4.0 coupons up a quarter point at 99-30.