Weeklong Rally Levels Off Ahead of Jobs Report

10yr yields began the week over 3.5% and rallied more than 20bps by yesterday morning.  Most of that progress came on Monday and Tuesday.  Yesterday raised doubts as to whether traders were interested in pursuing additional bond market gains.  Today confirmed the doubts.  Yields tapped the floor at yesterday's lowest levels a few times but opted to drift sideways-to-slightly-weaker throughout the day.  No major harm done and we're merely left with the impression that traders would need more convincing in order to take the rally to stronger levels.

Econ Data / Events
    • Jobless Claims
      • 228 vs 200 f'cast, 246 prev
      • last week revised up from 198
    • Challenger Job Cuts
      • 89.7k vs 77.8k prev
Market Movement Recap
09:09 AM

Slightly stronger overnight, but giving up gains after Jobless Claims data (but not necessarily because of it).  MBS near unchanged levels and 10yr down 1.3bps at 3.296 (but up from lows of 3.253).

09:39 AM

Some weakness heading into 9:30am NYSE open, but stabilizing now.  10yr down 1.9bps at 3.29.  MBS up 3 ticks (.09).

03:35 PM

Losing ground in the afternoon after staying flat through 2pm ET.  MBS down just over an eighth.  10yr down less than 1bp at 3.3.