Quick Update while I finish writing the morning post...

Jobs Data is out... http://www.bls.gov/news.release/pdf/empsit.pdf

"Nonfarm payroll employment fell sharply in January (-598,000) and the unemployment rate rose from 7.2 to 7.6 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today."

Market consensus was for 524,000 jobs losses with the range of expectations between 450,000 and 750,000. After the announcement TSYs sold off as next week's expected surplus of supply trumps the "within range" jobs data. MBS didn't budge initially but we are seeing some selling now...

FN30_________________________                GN30______________________

FN 4.5 -------->>>> -0-09 to  100-14                   GN 4.5 -------->>>> -0-06 to  100-25

FN 5.0 -------->>>> -0-04  to  101-19                  GN 5.0 -------->>>> -0-03 to  101-28

FN 5.5 -------->>>> -0-02  to  102-07                  GN 5.5 -------->>>> -0-04 to  102-12

FN 6.0 -------->>>> -0-01  to  102-31                  GN 6.0 -------->>>> -0-03  to  102-28

MBS market participants will be moving up in coupon after the release of the prepay report last night....