The end of the week brings the first Friday of the month (of October!) and thus the big jobs report–the economic data that has ruled all others throughout bond market history.  The post-covid bond market dynamic means the jobs report would have to fall almost unimaginably far from forecasts to have a big impact.  What to do in the meantime?  Same thing we do every day for the past few months: guard the range and wait for breakout.

Econ Data / Events

Market Movement Recap

08:37 AM

Stocks opened stronger overnight after Friday’s later rally.  S&P futures up 1.42% to start and bonds paid some attention to those gains with 10yr yields up just over 1bp to .668%.  MBS are opening 1 tick (0.03) weaker at 103-09 (103.28).

02:47 PM

Nice upward drift in MBS prices, yet again, despite modest weakness in Treasuries.  Like last week, credit lighter supply from MBS sellers, and Treasuries being harder hit by stock market gains (which is still not very hard).  10yr yields up .65bps to .663.  And 2.0 UMBS up almost an eighth at 103-12 (103.125).