Jobs Number Sinks Bonds

  MBS Market – Friday’s surprising jobs number caught bond traders by surprise.  MBS bonds which had been surging sold off 59 basis points.  Not only was the jobs number of 165,000 new jobs above ADPs estimate of 122,000 new jobs, (As we have discussed their number are frequently suspect) but they exceed the 155,000 estimate.  The icing on the cake was a positive adjustment of February and March numbers of 114,000 additional new jobs.  This was cause for celebration indeed as it brought the unemployment rate down to 7.5% which was the lowest in five years.  We all know that is much smaller than the real number but it was still mighty good news.