Bond markets were able to put some green on the screen again yesterday, but that's not as positive a development as it normally is.  We talk sometimes about bonds being forced to rally against their will and the past few days increasingly look like one of those times. 

Wednesday's ADP data gave us a good opportunity to see this play out (bonds normally would have sold-off after such a big beat).  Then Thursday's massive stock market selling at home and abroad only resulted in a modest improvement for bonds. 

2016-1-7 combo

It seems like it's only a matter of time before the global flight-to-safety takes a break and bonds get their first opportunity of 2016 to go where it looks like they want to go (higher).  Something like a much stronger than expected NFP number could be the sort of thing to catalyze such a turning point.  In fact, NFP couldn't come at a worse time considering it looks like bond markets are already tired of rallying. 

If NFP beats big and we STILL don't see a reversal of recent momentum, it would speak volumes to the legitimacy of fears surrounding the global economy.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
100-22 : +0-01
FNMA 3.5
103-15 : -0-08
FNMA 4.0
106-08 : +0-00
2 YR
0.9840 : +0.0280
10 YR
2.1770 : +0.0240
30 YR
2.9450 : +0.0190
Pricing as of 1/8/16 7:24AMEST

Tomorrow's Economic Calendar
Time Event Period Forecast Prior
Friday, Jan 08
8:30 Non-farm payrolls (k)* Dec 200 211
8:30 Private Payrolls (k)* Dec 195 197
8:30 Unemployment rate mm (%)* Dec 5.0 5.0
8:30 Manufacturing payrolls (k)* Dec -1 -1
8:30 Average earnings mm (%) Dec 0.2 0.2
8:30 Average workweek hrs (hr)* Dec 34.5 34.5