Bonds got off to a rocky start well before the domestic session began. European bonds kicked off the selling spree, but most of the weakness arrived after the 8:30am release of the NY Fed Manufacturing data which swing wildly back into positive territory after being down big last month (+10.3 vs -18.0 f'cast, -24.6 prev). That said, the weakness was most noticeable while EU markets remained open. After they closed, US bonds flat-lined with MBS down roughly half a point and 10yr yields pushing 3.60%. Strong bank earnings are also said to have contributed to the weakness.
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- NY Fed Manufacturing
- 10.8 vs -18.0 f'cast, -24.6 prevb
- NAHB Builder Confidence
- 45 vs 44 f'cast, 44 prev
- NY Fed Manufacturing
Flat in Asia, weaker in Europe. More selling in US (strong earnings and NY Fed data). 10yr up 6.6bps at 3.581. MBS down 3/8ths.
Moderate additional weakness heading into the 11am hour, but mostly a reflection of illiquidity. 10yr up 8bps at 3.595. MBS still down 3/8ths.
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