The job numbers seem a little too good to be true
Nonfarm Payrolls were down only 11K, the Unemployment Rate fell to 10.0%, and last month’s job losses posting revisions lower by 79K set the table for a “Katie bar the door” bond selloff this morning. Initial reaction punished the 10 year note lower by over 1 point, taking the yield as high as 3.52% (right into good support I might add). Mortgage backs followed suit with worsening interest rates and pricing; 4.50%/4.625% off as much 24/32’s.