Courtesy of Mish.
Curve Watchers Anonymous notes that treasury yields surged higher and mortgage backed securities (MBS) had a steep selloff following purportedly good job numbers.
Beneath the surface, the economy actually shed 326,000 full-time jobs.
In the short-term what matters is the reaction, so let’s take a look at how treasury yields reacted to the news.
$TNX: 10-Year Treasury Yield
Yield on the 10-year treasury note is up 21.8 basis points to 2.719%. The yield is up 110 basis points (1.1 percentage points) since the May low of 1.614%.
$TYX: 30-Year Treasury Yield
Yield on the 30-year long bond is up 18.2 basis points on the day to 3.679%. The yield is up 86.9 basis points since the May low of 2.81%.
$FVX: 5-Year Treasury Yield
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