• The jobs report showed a mixed bag of results, with lower payroll growth and a downward revision to last month’s numbers, but slightly higher wages and lower unemployment.
  • Bonds initially gained on the news, but yields rose as investors digested the “yeah buts” of the report. Stocks also picked up early gains, but erased them later in the day.
  • Durable goods orders came in below expectations, but factory orders rose.
  • The stock market erased gains as Apple and other megacaps fell. Bond yields fell as the mixed jobs report did little to alter bets on the outlook for Federal Reserve policy.
  • Rates were arguably oversold heading into the jobs report, but could have continued higher if NFP was much higher than expected.
  • Bonds spent the rest of the trading session correcting that posture. Some of that correction could be short covering on a Friday. Some could be a legitimate attempt to get into a more nimble position ahead of next week’s CPI data.
  • MBS were up 69 bps on the day. Stocks lost about 24 points.

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