This was a bigger than expected loss in terms of consensus, though several prominent economists had actually forecast a bigger loss ranging from 250k to 300k.
So far, MBS is not reacting with much volatility. Trading is light currently, and tsy's also are not making huge gains
Libor swap spreads are shooting downward which should help MBS price here shortly. Stay tuned to the float channel for the next update. Until then, no news is good news as we will let you know ASAP if MBS turn negative on the day.
So far it appears that this worse than expected level was actually more expected than the numbers let on. The total for 2008 is over 1 million jobs pared. Still, stock futures are not down as much as one might think with the dow actually up 25 points.