NFP came out much stronger than expected with solid revisions to the past two reports, and a drop to 5.9% on the unemployment rate. With revisions, this report adds 317k jobs. Historically, this would have tanked the bond market, but MBS are currently down only an eighth and 10yr yields are up 2bps at 2.456. What gives?
If you didn’t read it already, read this: Interesting Times on NFP Friday.
That’s my analysis of “what gives.” Bond markets don’t much care about economic data right now. Nothing more to say really.