MBS Outperformance is Part of the Answer to Today’s Riddle

When does an obviously weak jobs report result in bonds losing ground?  We already know the answer (spoiler alert: it’s “today”), but the reasons behind the answer are up for debate to some extent.  The focus of the morning’s commentary was to lay most of those reasons out with charts, but as the day progressed, MBS outperformance helped emphasize one of the factors even more.  We discuss that in…