Utterly Shocking Resilience in Bond Markets
This is turning out to be one of the most resilient bond market responses to a stronger NFP number, ever. Despite a fairly massive 78k 'beat,' Fannie 4.0s are only down 5 ticks day over day, and well within yesterday's trading range at this point. The bounce back from the first wave of selling has been fairly linear and drama-free as well. Case in point:
Treasuries are underperforming just a bit, but are still inching back into yesterday morning's range--currently up 5.25bps at 2.656. If we consider that the longer-term range from February through now has been 2.6-2.8, being at 2.65+ after a big NFP beat is really quite something, and perhaps even reveals some underlying bond bullishness that was merely forced to cope with unexpectedly strong data.