Yesterday's bounce at 3.35% suggested that the bond market's will to rally may have been running out of steam. It was far from a guarantee considering bonds nonetheless ended the day at lower yields, but a vague, potential warning perhaps. Today's early trading suggested the market hadn't made up its mind before the 10am econ data. After the data, however, the range received clear reinforcement from the higher inflation expectation component in the Consumer Sentiment numbers.
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- Import Prices
- 0.4 vs 0.3 f'cast, -0.6 prev
- Export Prices
- 0.2 vs 0.2 f'cast, -0.3 prev
- Consumer Sentiment
- 57.7 vs 63.0 f'cast
- 1yr inflation expectations
- 4.5 vs 4.6 prev
- 5yr inflation expectations
- 3.2 vs 3.0 prev
- Import Prices
Steadily but modestly weaker overnight, mostly during EU hours. Pushing back a bit after AM data. 10yr up less than 1bp at 3.395. MBS up 1 tick (0.03).
Mixed reaction to sentiment data. 10yr up less than 1bp at 3.395. MBS down 2 ticks (.06).
Bit more selling now with 10s up almost 4bps at 3.425. MBS down 6 ticks (0.09).
Stocks and bonds bouncing in unison with 10s quickly up to new highs (+6 bps at 3.449). MBS are down just over 3/8ths of a point.
A bit more selling and near the weakest levels of the day. MBS down just over 3/8ths and 10yr yields up 7bps at 3.457
MBS Market Alerts
