BIG EMPLOYMENT REPORT= No Change
MBS are down -1/32 (FNMA 30-yr 3.0 at 102.05), around 1/32 higher than yesterday at this time. Favorable repricing took place yesterday.
Today’s mixed Employment report caused some volatility but had little net effect on MBS prices. Against a consensus forecast of 190K, the economy added 242K jobs in February. Upward revisions to prior months added another 30K. The Unemployment Rate remained at 4.9%, as expected. Average Hourly Earnings, a proxy for wage growth, declined 0.1% from January, well below the consensus for an increase of 0.2%. The weak wage data offset the strong job gains, making today’s report roughly neutral for MBS. The Dow is down 10 points. No more economic data will be released today.