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MBS RECAP: MBS Outperformance is Part of the Answer to Today's Riddle

Posted To: MBS Commentary

MBS Outperformance is Part of the Answer to Today's Riddle When does an obviously weak jobs report result in bonds losing ground? We already know the answer (spoiler alert: it's "today"), but the reasons behind the answer are up for debate to some extent. The focus of the morning's commentary was to lay most of those reasons out with charts, but as the day progressed, MBS outperformance helped emphasize one of the factors even more. We discuss that in addition to all the other charts in today's video. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Nonfarm Payrolls 235k vs 728k f'cast, 1.053m prev Unemployment Rate 5.2 vs 5.2 f'cast, 5.4 prev Market Movement Recap 08:37 AM Slightly weaker overnight, then a paradoxical reaction to the weak jobs data. Bonds…(read more)

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