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!