Non-Farm Payroll reported this week shows the U.S. economy missed the estimate of 650,000 non-farm jobs but with 559,000 even as the unemployment rate cratered to a new pandemic-era low. The U.S. economy remains more than 7 million jobs off its pre-pandemic levels from February 2020. The numbers show the warm (instead of hot) U.S. economy.

The Federal Reserve on Wednesday said it would begin the process of unwinding the $13.8 billion corporate bond portfolio that it amassed in the midst of the COVID-19 pandemic. This dollar amount is very small on Fed’s balance sheet, and in theory will not impact any markets. However, the divestment may signal an early sign of tapering back quantitative easing (QE) tactics.

In terms of this week’s market condition, we used the high volatility settings to scan the conforming credit spreads. Premier Members can view the screening reports of conforming credit spreads, and others can join us to test-drive free for 30 days.