MBS Morning: Breaking Out in a Bad Way After NFP

Posted To: MBS Commentary

Non-Farm Payrolls (NFP) were much weaker than expected (194k vs 500k f'cast), but that had almost no impact on the bond market in the first hour of trading. This could be due to the mixed results beyond the NFP headline (e.g. 4.8% vs 5.1% f'cast), but we can also consider the fact that the report needed to be downright terrible in order to derail the Fed's taper goals in November (or significantly stronger to accelerate them). As such, today's numbers don't really carry an implication for adjustments Fed policy timing. Whatever the mix of inputs may have been, the initial trading reaction was over in an hour and a new wave of momentum took shape at the 9:30am NYSE open. Unfortunately, it wasn't a good wave for bonds as 10yr yields have drifted up to the highest levels…(read more)

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MBS Morning: Breaking Out in a Bad Way After NFP
MBS Morning: Breaking Out in a Bad Way After NFP

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