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One more GDP reading for the first quarter shows a decline in Productivity of 3.1%, even lower than the initial -1.9%. Despite slowing wage growth, those who do have jobs are not getting the ax as frequently.  Reported planned layoffs declined a whopping 33% from this time last year.  We also saw a 2.9% decrease in the number of individuals filing for unemployment this week compared to last week.  The “official” BLS Jobs Report comes out tomorrow morning.

After a three day free-fall where MBS gave up 156bps (roughly 1 1/2 points), bonds are struggling to work their way back up the side of the mountain.