Uneventful, Sideways Day After Initial Losses

Today had the dubious distinction of seeing the highest yields in more than 4 months while also being uneventful and largely sideways in terms of bond market momentum.  The steeper losses were limited to the overnight session with 8am bringing a quick but shallow correction.  Bonds were back to levels that would only be considered modestly weaker by 10am and the rest of the day was spent drifting sideways in the same territory.  There were no standout market movers, news headlines, or Fed comments.

Econ Data / Events
    • Nonfarm Payrolls
      • 303k vs 200k f'cast, 270k prev
    • Unemployment Rate
      • 3.8 vs 3.9 f'cast, 3.9 prev
    • Earnings
      • 0.3 vs 0.3 f'cast, 0.2 prev (revised up 0.1)
Market Movement Recap
09:33 AM

Follow-through selling overnight with 10s opening as high as 4.463.  Now up only 2.5bps at 4.427.  MBS down an eighth after opening down more than a quarter point.

11:51 AM

Rally stalled.  MBS an eighth off highs and 6 ticks (.19) lower day over day.  10yr down 2.4bps at 4.425

02:18 PM

bouncing back a bit heading into the 2pm hour.  MBS down only an eighth.  10yr up 1.1bps at 4.413

04:28 PM

Gliding flat into the 5pm close.  MBS still down an eighth.  10yr up 1.9 bps at 4.421.

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