Posted To: MBS Commentary

Locking vs Floating After Today's Jobs Report NFP missed the mark and bonds ultimately rallied today. That rally sets up a solid lock opportunity (either "today" or "soon," depending on your risk tolerance) as we expect to be right back in this position in the near future? What position is that? The one where markets are wondering if we're about to get econ data that will accelerate the Fed's tapering conversation. Today's jobs data says "not yet." That's good for rates in the short term, but it creates bigger risks in the coming weeks (perhaps days). Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Nonfarm Payrolls 559k vs 650k f'cast, 278k prev Unemployment Rate 5.8 vs 5.9 f'cast Participation Rate -0.1 (offsets U/E decline) Market…(read more)

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Source: Mortgage News Daily