First off, read the AM commentary if you haven't already. This recap doesn't add much to that (but the video adds a lot). Bottom line, NFP was weaker, but that was the worst of the news. The unrounded unemployment rate barely budged and it would have moved LOWER (under 4.00%) were it not for the uptick in labor force participation. Higher oil prices contributed a bit to intraday weakness as did a recovery in French credit spreads. At the end of the day, this wasn't the jobs report that sowed any seeds of doubt about cracks showing in the labor market.
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- Average earnings mm (Sep)
- 0.1% vs 0.3% f'cast, 0.3% prev
- Non Farm Payrolls (Sep)
- 29K vs 90K f'cast, 162K prev
- Participation Rate (Sep)
- 61.8% vs -- f'cast, 61.6% prev
- Unemployment rate mm (Sep)
- 4.2% vs 4.1% f'cast, 4.1% prev
- Average earnings mm (Sep)
Initially much stronger after NFP, but dialing back a bit. MBS up a quarter point and 10yr down 4.1bps at 4.198
MBS now down a quarter point and 10yr up 4bps at 5.28. Cooler heads prevail on jobs report reaction and EU credit spreads
MBS Market Alerts
