So Long August. Don't Let The Door Hit Ya!

July!  We miss you!  

August, please leave!

Hopefully September finds a way to be a warm bowl of porridge between July's rate-friendly exuberance and August's full-fledged correction.  We see no other reason for today's late weakness than month-end tradeflows

Econ Data / Events
    • ADP Employment
      • 132k vs 288k f'cast, 128k prev
Market Movement Recap
09:54 AM

Slightly weaker overnight after EU econ data and EU bond selling, but bouncing back a bit into domestic hours and fairly steady now.  10yr up less than 1bp at 3.121%.  MBS down only 1 tick at 99-21 (99.67)

12:22 PM

Choppy in a narrow, sideways range.  Trading levels right in line with the previous update after being slightly stronger from 10-11am ET.

02:05 PM

Some weakness heading into the 2pm hour.  No particular reason.  Isolated mainly to MBS, now down an eighth on the day.  10yr still up just over 1bp at 3.125.

03:11 PM

Some bigger selling after the 3pm CME close (month-end trading).  10yr up 3.4bps at 3.146.  MBS down 10 ticks  (.31) at 99-13 (99.41).

04:14 PM

Additional weakness as month-end trading positions continue squaring up.  MBS down a few more ticks and 10yr now up 7bps at 3.183.