You're likely already aware that the reaction to NFP hasn't been good for the bond market. The market's pre-data short position has made it easy for benchmark 10yr yields to hit 10-month highs in the aftermath.
MBS FNCL 4.5's are in danger of re-entering the 100 price handle. But as of right now, they're putting in a decent show of support around those 101-00 levels and haven't moved lower for the better part of this hour. On the other hand, they haven't moved higher either! Yield spreads are tightening though. Desks report real$ money buying on the price lows. (AQ would rather receive into 3.70)
Stocks have fallen off big-time, from 1308 down to 1302 in the S&P, yet 10yr yields have broken off from the lever and continue to bounce around their highest yield levels, currently at 3.636. Our bear flag forecast calls for 10s to test 3.70% before a potential turn around.
Sentiment is sad in the mortgage market. What else is new? If you can't do anything about it, at least you can join your fellow originators to either wallow in bleakness or give each other perspective and support. No better place for that than the live chat channel on the MBSonMND dashboard. The fact that AQ and I are putting out live updates and commenting on the live charts and prices throughout the day makes this the place to be for MBS devotees in good times and bad.
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