Bond market participants rushed back into the office today with volumes at the highest levels since CPI and the Fed 3 weeks ago. One major source of tradeflows was hefty slate of new corporate bond issuance. This is normally a headwind that pushes rates higher. The same is true for the large block trade that hit around 10:30am ET. While both of these headwinds exerted their expected forces, bonds nonetheless scratched out moderate gains to begin the new year.
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- Construction Spending
- 0.2 vs -0.4 f'cast, -0.3 prev
- Construction Spending
Stronger overnight, following an EU bond rally driven by data. 10yr down 9bps at 3.743. MBS up 19 ticks (.59).
Losses after 10:30am, kicked off by a large block trade at the CME. 10yr still down 4bps at 3.79, but up from 3.72 lows. MBS still up almost 3/8ths, but down a quarter point from highs.
Extra flat since 11am. MBS still up just under 3/8ths of a point. 10yr still 3.79 with minimal deviation for the past 4+ hours.
MBS Market Alerts
