• Nonfarm Payrolls
  • 20k vs 180k forecast
  • Last month revised up from 304k to 311k
• Wages
  • +0.4 vs +0.3 m/m
  • +3.4 vs +3.3 y/y
• Unemployment
  • 3.8 vs 3.9 forecast
  • participation rate unchanged

While the unemployment and wage growth components of the data are strong, the payroll count clearly isn't.  The bond market's reaction was strongly positive at first, but 10yr yields are having 2nd thoughts after bouncing at 2.61% (currently back up to 2.63%).  

Fannie 3.5 MBS are up 2 ticks on the day (0.06) but were briefly another eighth of a point higher in the 30 seconds following the release.  

For now, we're still waiting to see where traders go with this one.  The bounce back could simply be a quick correction to a move that will continue throughout the morning, or 2.61% could indicate legitimate resistance.