Bonds lost ground to start the new week, but not for any compelling reasons. If we could even make a case for the weakness being caused by something, we'd be forced to rely on unsatisfying explanations like technical corrections or a leveling off of the prevailing trend ahead of bigger-ticket data. All that having been said, today was unequivocally a leveling-off of the prevailing trend ahead of bigger ticket data. The focus is not so much on the 7-8bps of 10yr yield weakness on this data-free day, but rather on the 20-40bps of movement that could be seen in response to economic data and the Fed over the next 7 business days.
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- Factory Orders
- -3.6 vs -2.8 f'cast, +2.8 prev
- Factory Orders
Moderately weaker overnight. Treasuries unresponsive to EU bond gains. 10yr up 5.7bps at 4.266. MBS down 10 ticks (.31).
Slightly weaker into 11am hour. MBS down 10 ticks (.31) and 10yr up 7.5bps at 4.284.
Worst levels of the day. 10yr yields up 8.8 bps at 4.297. MBS down 3/8ths.
sideways near weakest levels. MBS down 11 ticks (.34). 10yr up 8bps at 4.289.
MBS Market Alerts
