- Very little movement overnight across multiple asset classes
- ADP helped bonds slightly out of the gate
- Tradeflows and late-morning economic data made a dent, but bonds recovered
- Modest gains keep technical momentum intact
Today was the right kind of quiet. Bonds only needed to stay in roughly unchanged territory in order to add confirmation to several technical indicators that recently turned positive. The 2 tick gain in MBS and 2bp gain in Treasury yields fits the bill.
The overnight session was exceptionally calm and resulted in bond markets beginning the day right about where they left off yesterday. ADP employment data came out weaker than expected and helped bonds make decent gains, but they soon found resistance and moved in the other direction heading into the stock market open.
Stronger inflation numbers within the ISM Non-Manufacturing report added to the negative momentum, but bonds quickly put their foot down without breaking through yesterday's range. The rest of the day was spent drifting back toward the days stronger levels without any fanfare whatsoever.
MBS | FNMA 3.0 102-20 : +0-01 | ||
Treasuries | 10 YR 1.7770 : -0.0230 | ||
Pricing as of 5/4/16 5:35PMEST |