Posted To: MBS Commentary

Bigger Picture Bounce Becomes Bigger Risk, But Not The only Risk Friday's strong jobs report certainly deserves some credit for increasing the risk that the Fed considers an earlier tapering timeline (as early as the September meeting if we see another similar report next time). But "another similar report" isn't a given. Ample uncertainty remains due to the current covid spike, and seasonally abnormal employment patterns being viewed through the lens of normal seasonal adjustments. Nonetheless, the downtick in the unemployment rate needs to be respected and we need to be ready to asses whether bonds are looking more interested in a sideways, "wait and see" approach next week or if today was just the first day of a bigger picture breakout. Econ Data / Events Fed…(read more)

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Source: Mortgage News Daily