A clear theme has emerged this morning.  The day's early jobs-related reports have all come out noticeably stronger (technically Challenger Layoffs increased, but 24k is still extraordinarily low).  This implies a bit of a warning shot for tomorrow's big jobs report (yes, we realize that today's jobless claims numbers don't actually align with the NFP survey week, but a labor trend is a labor trend, and folks are clearly getting back to work).  While bonds have reacted somewhat to this warning shot, they aren't panicking.  The takeaway is that they're ready to react to labor market data, but they're waiting to see the star of that show: tomorrow's NFP number.

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In the bigger picture, this morning's modest volatility quickly gets lost in the shuffle.

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MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
UMBS 2.5
103-15 : -0-03
10 YR
1.6160 : +0.0250
Pricing as of 6/3/21 9:48AMEST

Tomorrow's Economic Calendar
Time Event Period Forecast Prior
Thursday, Jun 03
7:30 Challenger layoffs (k) May 22.913
8:15 ADP National Employment (k)* May 650 742
8:30 Labor Costs Revised (%) Q1 -0.4 -0.3
8:30 Productivity Revised (%) Q1 5.5 5.4
8:30 Jobless Claims (k) w/e 390 406
10:00 ISM N-Mfg Bus Act * May 67.2 62.7
10:00 ISM N-Mfg PMI * May 63.0 62.7