Market Report for Today and Tomorrow
Mortgages are putting in yet another impressive day this AM after tightening to the curve by nearly 5 tics each of the last 3 sessions. The unwinding of risk by investors has created a lift-a-thon for MBS, which have been met by waves of heavy buying.
MBS shrugged off yesterday’s impressive move in equities (DOW +490pts) and successful bond auctions overnight out of Spain and France. Fannie 3.5s were down 10 tics early and 2 wider, but have since recovered and are in the black on the day after weekly claims came in worse than expected.
Today should be relatively quiet as market participants square up positions in front of tomorrow’s employment report. The consensus is expecting 125k new nonfarm jobs and for unemployment to remain at 9.0%.