What Jobs Report? Bring on CPI and the Fed

What Jobs Report? Bring on CPI and the Fed

Bonds made it almost all week putting on a superhuman display of immunity to bad news, but Friday’s jobs report was the kryptonite.  Whether or not a trader has any criticism for volatility in the payrolls data, they still agreed on the move with 10yr yields up nearly 15bps by the close.  MBS outperformed nicely, as we were hoping they would, thus limiting the worst possible rate sheet outcomes.  In fact, we’re ending the week in better shape than the last and thoughts have already turned toward next week’s bigger ticket events (CPI on Tuesday and the Fed on Wed).  And yes, this is a “dots” meeting for the Fed…