Hot Jobs Report

Happy Friday everybody!

We got in BLS Job Creations for the month of February much higher than was projected. Projections for the month were 140k, actual creations came in 170% higher at 379k. The S&P reacted well this morning but are now in the red while tech stocks continue to get hammered – down another 1.8% this morning.

We saw the bond market take a hit after the Fed meeting where Jerome Powell seemed to take a nonchalant stance on upcoming inflation. We know that inflation is the enemy of the bond market, so having our Fed Chair not have a real opinion on near term inflation was not good news for bonds.

Mortgage Backed Securities broke through a floor of support yesterday and were sitting on the final floor of support above the worst pricing we have seen in a year when the market opened up this morning. Luckily, MBS’ are now up 6 bps. We are still holding a locking bias knowing that that final floor is so close.

End the week strong and have an awesome weekend!