Posted To: MBS Commentary
What's Up With Super Weak NFP Tanking The Bond Market?! Non-Farm Payrolls (NFP) were much weaker than expected (194k vs 500k f'cast). At almost any other moment in history, this would be grounds for sharp bond rally. Indeed, it looked like we might get a little love in the first few minutes following the data, but then things changed. Yields ultimately hit the highest levels in months and MBS tanked hard. It's important to remember that it would have taken an even weaker report to derail the Fed's taper timeline. Moreover, today's losses weren't really as "big" as they were "surprising." Either way, the trend is not our friend for a variety of reasons unrelated to today's data. Bottom line, the jobs report didn't do anything to stand in the…(read more)
Source: Mortgage News Daily
