MBS Live Morning: Negative GDP Reading Not Enough to Inspire a Bond Rally

Yesterday, we surmised that the absence of new rally momentum meant rates weren't yet ready to confirm a major ceiling without digesting a bit more data as well as next week's Fed announcement.  While Friday's PCE inflation is this week's headline of choice, today's GDP wasn't far behind.  The results were mixed depending on how you want to view them.  Most of the data was upbeat, but steep declines in exports/imports and inventories took the headline into negative territory.  That was worth a brief rally for bonds, but not one that was big enough to undo overnight weakness.