Yesterday's bond market volume was as low as it's been since Monday, March 18th.  Then, like now, bonds were on the approach to a big potential market mover, although the March 20th Fed announcement was almost guaranteed to be a big deal whereas today's jobs report merely reserves the right to be.

Nonetheless, the narrow, sideways trading day brought us one step closer to the borderline between ranges seen in the chart below (2.55%).  The overnight trading session finished the job, adding another few bps of weakness to almost perfectly erase all of the post-Fed gains and leave us right on the edge between THEN and NOW

2019-4-5 open

This is the sort of behavior--a decisive return precisely to an obvious technical dividing line--we see when bonds are considering a big move.  Naturally, NFP has the best chance of informing the direction of that big move.  All we can do now is watch and wait.


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
100-31 : -0-02
Treasuries
10 YR
2.5370 : +0.0270
Pricing as of 4/5/19 8:19AMEST

Tomorrow's Economic Calendar
Time Event Period Forecast Prior
Friday, Apr 05
8:30 Average earnings mm (%) Mar 0.3 0.4
8:30 Non-farm payrolls (k)* Mar 180 20
8:30 Unemployment rate mm (%)* Mar 3.8 3.8