MBS Day Ahead: 7 Charts to Help Make Sense of Paradoxical Jobs Report Reaction
Nonfarm Payrolls came in at 235k versus a median forecast of 728k. Poll a hundred market strategists about the likely market impact and 99 of them would tell you a bond rally would be all but guaranteed and that stocks would be soaring on expectations of prolonged Fed accommodation. While many of those strategists will be expending significant effort on making sense of this today, several key points have already emerged (with the truth likely being some combination of the following).
Today’s “miss” is concentrated in Retail Trade…