scheduled data out:
- Empire state slightly better than expected
- PPI pretty much right on with consensus
- The majority of the impact coming from Jobless Claims. Up from last month and a bit higher than expected, but not as bad as some other previous lows. So the absence of catastrophe is being taken as a positive here. Treasuries took an somewhat delayed turn, but are down across the curve now. Shorting the 30 yr looks like a good bet at the time of this timestamp.
This all is given MBS a chance to tighten up a bit, but we've nonetheless been pulled down a few ticks. Nothing major yet, just 1-4 ticks, but obviously under pressure. If you have price protection, and a sensitive deal, may be time to lock, but the day of course, is young. Most of us don't have rates yet, so we'll have to wait to see where we come out and assess from there. Stay tuned...