"Little-Changed" Friday, Both For Bonds and Inflation

Today begins with the much-anticipated PCE inflation data coming in right in line with expectations.  The result: a bond market that was already mostly unchanged in the overnight session remains mostly unchanged in early trading.  With yields hovering around the best levels in more than a month, it's hard to object to the flat performance.  In fact, even a modest give-back could be tolerated and understood from the standpoint of traders squaring up positions heading into the 3.5-day weekend.  Bonds close at 2pm ET today and are fully closed on Monday.

Econ Data / Events

  • Fed MBS Buying 10am, 11:30am, 1pm

  • Core PCE Prices m/m.... 0.3444 vs 0.3 f'cast, 0.3 prev
    Core PCE Prices y/y...... 4.9 vs 4.9 f'cast 5.2 prev

Market Movement Recap
08:57 AM

Very flat overnight  and little-changed after PCE inflation data.  10yr perfectly unchanged at 2.741 and MBS down 2 ticks (.06).

02:21 PM

Bonds closed about where they opened (roughly unchanged).  MBS technically down 1 tick at 100-13 and 10yr yields up half a bp at 2.747.