• Nonfarm Payrolls
  • 151k vs 160k f'cast, 125k prev
• Unemployment Rate
  • 4.1 vs 4.0 f'cast, 4.0 prev
• Participation Rate
  • 62.4 vs 62.6 f'cast

It appears that investors were braced for the job count to drop as opposed to inch modestly higher and for the unemployment rate to rise a lot more than it did--at least if the initial reaction was any indication.  Yields jumped to 4.29 for a moment before returning to pre-NFP levels just now.

Cooler heads are now prevailing as investors move past the "shock" of the decent NFP and digest the other numbers.  If there's a saving grace for bonds, it's that the participation rate means that unemployment rose more like 0.3% instead of 0.1% (lower participation would reduce unemployment all other things being equal). 

MBS are up just over an eighth of a point and 10yr yields are down 2.9bps at 4.247.