The US bond market weakened further after the release of stronger than expected non-farm payroll data. The 10-year yield climbed 7 basis points and MBS lost a quarter-point. The jobs report showed the labor market remains strong despite the Fed’s tightening policy. However, the downward trend in average hourly earnings and CPI is concerning. The Fed is closely watching the near-term forward spread rather than the traditional spread to determine the bond market signal. The recent turmoil in regional banking continues to affect the market, with traders betting on a pause in hiking by the Fed. The waiting game now turns to next week’s CPI data, which could indicate the eventual range breakout direction. Overall, stocks had a big day up 75 points, while MBS lost 14 bps and the 10 yr was up 7.