Some very strange news this morning has the mortgage market at risk for a sharp reversal. The 10-year T-note bottomed at 4.54 percent and this morning is 4.7 percent and unstable, forcing mortgages to depart 6.25 percent, headed north. The cause of this abrupt turn in expectation: in plain, nontechnical English, things don't look as bad as the bond market had hoped. On the first Friday of every month at 8:30 a.m. Eastern Time, the Labor Department releases the single most-watched datum of each month, the change in nonfarm payrolls in the immediately prior month. Everybody in bondland knows that the job market is the best proxy for overall economic growth and the threat of inflation; the Fed protests otherwise for political cover, but knows that inflation risks and containment ultimately i...
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