Chop Chop Choparoo! Looks like the days that have been light on data this week have also led to the most severe losses in bonds. I'd urge you though, to look less at the MBS chart for the moment and more at the benchmark 10yr tsy chart. After the bounce on the morning of the 16th, the rest of the week's trading range was apparently determined...
Today as well, we began at the lower yield level and look to be closing near the high yield level. In fact, THREE OUT OF FIVE days this week have contained BOTH yield highs and lows! Meanwhile, the spread product MBS showed a little more positivity, demonstrating an ever-so-slight uptrend vs. tsy's more or less horizontal trend channel. Sadly, if we close near these levels, our channel will indeed take on more of that "horizontal" aspect, but it's only really sad inasmuch as you assign significance to ANY AND ALL movement that occurs within the broader range. And you should not.
We'll save the rest of the soap box pontification for the actual weekly wrap up in an hour or so and just give you the vitals for now.
- MBS 4.5 at 100-15, a few ticks over the lowest close of the week at 100-13+_thus MBS look poised for a perfectly range-bound week
- Stocks closing out without any major drama, helps us avoid any stock lever induced weekend spoilers
- Same story in tsy's as in MBS. intraday weakness leads levels more or less right on top of the worse levels of the week, also perfectly range bound in terms of closing price levels.
- Tsy futures look to indicate a complete wash on the day with the daily candle counterstriking 100% of yesterday's candle. I'm sure I'll work "givething" and "takething away" in a chart for the close.
No more drama, no more surprises from here through the last hour of the day. Heck, even if they come, the chances that they'd be indicative of the upcoming week's action are minimal at best. We'll get back to you shortly, but you're free to start your weekend early as it looks like we should have excused you when the results were in all the way back on the 16th.