The spreads on commercial mortgage-backed securities were tighter on Friday after a better than expected jobs report from the Labor Department, Trepp Analytics said in a daily update Monday.
The firm says spreads on CMBS 2.0-3.0 AAA bonds were tighter by 5 to 7 basis points after the jobs report served as somewhat of a catalyst for economic activity in the wake of central banks dragging their feet on additional bond purchases.
The report says 163,000 jobs were created, which is better than expected, if not robust enough to stimulate greater economic activity.
The jobs report also is credited for causing a rally in U.S. equities as CMBS bond spreads fell, Trepp noted.
"The benchmark GSMS 2007-GG10 A4 bondfinished at 218 basis points over swaps—four basis points better than Thursday's close," the research firm reported.