Posted To: MBS Commentary
The game is not over. We didn’t just miraculously win against all odds. The sell-off that’s plagued bond markets for the past 2 weeks can’t yet be assumed to be defeated. That said, we stayed alive to fight another day . Today’s NFP numbers weren’t too terribly bad. Indeed, on most any other month, 223k payrolls versus a 224k forecast would be considered a strong report, but that’s not what bond markets were worried about today. They were worried about an exceptionally strong report that would unequivocally put the nail in the coffin of the long term rate rally and guarantee the fastest possible Fed rate hike timeline. Today’s report didn’t drive said nail. So we were left with a token bounce in the other direction that had EVERYTHING to do with Fed rate hike…(read more)
Via:: MBS RECAP: Token Post-NFP Rally Doesn’t Make Us Safe
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