This morning's Day Ahead laid out a case for bonds taking a "lead-off" ahead of tomorrow's NFP data.  It's not necessarily about NFP (the nonfarm payrolls component of the jobs report) as much as the recently narrow range in longer-term bond yields.  

For instance, 10yr yields have traded between 2.28 and 2.35 for nearly 2 weeks now, and they were inching above that 2.35 barrier right after this morning's economic data.

Interestingly enough, it was the "unit labor cost" component of the Productivity and Costs report that did the damage early.  It caused additional selling that piggy-backed on overnight weakness courtesy of EU bond markets.  The EU effect was again apparent in the noon hour when Treasuries suddenly found their footing immediately following the EU bond market closing bell.

Fannie 3.5 MBS ended the day down an eighth of a point and 10yr yields just barely held above 2.35%--a somewhat equivocal way to challenge the recent trend, but a challenge nonetheless.


MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.5
102-18 : -0-04
Treasuries
10 YR
2.3523 : +0.0433
Pricing as of 5/4/17 7:37PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
8:44AM  :  ALERT ISSUED: Weaker After Labor Cost Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "HOUSE COMMITTEE APPROVES MEASURE TO REVISE DODD-FRANK"
Sung Kim  :  "And if you think it's cut throat now, let's see what happens if they revise/eliminate lo comp"
Sung Kim  :  "Regulations have been the friend to competent loan officers"
Sung Kim  :  "I prefer they stay in place"
John Tassios  :  "competitive marketplace will force LO comp to stay in check. Don't need Gov to tell our industry what we should have for comp. @2cents"
Matthew Graham  :  "there was greed in every corner of the market. Consumers, originators, lenders, ratings agencies, GSEs, investors, appraisers, title, realtors... it took a village. Those with the biggest lobbies have seen the least fallout."
Kurt Stahl  :  "here's a quick comparison tool by radian of HR and Home Possible Advantage http://www.radian.biz/servlet/servlet.FileDownload?file=015C0000001ONDL"