The day is young, but off to an uncommonly volatile start following 2 key inputs.  The overnight session brought news of the Senate passing the $1.9 trillion spending bill.  Bond yields surged higher as a result.  The second input was the big miss in the jobs report (combined with the big beat in the unemployment rate).  The initial reaction was strongly positive, but it has since reversed course (and then reversed again, and then again one more time). 

All of the bond market volatility is playing out in a vacuum that almost completely ignores the stock market.  If you ever wondered whether or not NFP deserves the title of the most consequential economic report for the bond market, days like today make it clear. 

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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.

MBS

UMBS 2.0

103-03 : +0-02

Treasuries

10 YR

1.1390 : +0.0990

Pricing as of 2/5/21 10:01AMEST

Tomorrow’s Economic Calendar

Time Event Period Forecast Prior
Friday, Feb 05
8:30 Non-farm payrolls (k)* Jan 50 -140
8:30 Unemployment rate mm (%)* Jan 6.7 6.7

By Matthew Graham , dated 2021-02-05 10:03:12

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Courtesy of Mortgage News Daily

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