Calm and Slightly Stronger, But Volatility Will be Back

Calm and Slightly Stronger, But Volatility Will be Back Once or twice per week, the bond market manages to post a fairly calm trading day against the prevailing backdrop of generally higher volatility. Today was such a day. The most helpful catalyst was an absence of any major war-related headlines and associated oil price volatility. That said, it's a near certainty that war-related volatility will be back in the coming week.  Econ Data / Events Average earnings mm (Apr) 0.2% vs 0.3% f'cast, 0.2% prev Non Farm Payrolls (Apr) 115K vs 62K f'cast, 178K prev Participation Rate (Apr) 61.8% vs -- f'cast, 61.9% prev Unemployment rate mm (Apr) 4.3% vs 4.3% f'cast, 4.3% prev Consumer Sentiment (May) 48.2 vs 49.5 f'cast, 49.8 prev Sentiment: 1y Inflation (May) 4.5% vs -- f'cast, 4.7% prev Sentiment: 5y Inflation (May) 3.4% vs -- f'cast, 3.5% prev Market Movement Recap 08:32 AM No major reaction to jobs report. MBS up 2 ticks (.06) and 10yr down 1.5bps at 4.375 10:46 AM Slightly stronger but leveling off.  MBS up 6 ticks (.19) and 10yr down 3.6bps at 4.356 02:13 PM MBS up 5 ticks (.16) and 10yr down 3.5bps at 4.356