Thursday's trading session provided an unpleasant but worthwhile reminder that "data dependence" cuts both ways in terms of its impact on the bond market. Yesterday's session saw weaker data help rates avoid a break above 4% while today's data arguably did the opposite. None of the above was a very big deal in the bigger picture, but Friday's jobs report certainly has the power to change the tone if it falls far enough from forecast.
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- ADP Employment
- 164k vs 115k f'cast, 101k prev
- Jobless Claims
- 202k vs 216k f'cast, 220k prev
- ADP Employment
Weaker overnight, led by Europe. More selling after data. 10yr up 7bps at 3.989. MBS down 10 ticks (.31).
Slightly choppy, but mostly sideways all morning. MBS down 9 ticks (.28). 10yr up 7.3bps at 3.993.
MBS are now down to the weakest levels of the day with 5.5 coupons down 3/8ths in total. 10yr yields are near their highs, up 8.1bps at 4.001.
MBS Market Alerts
