Super Sideways After AM Volatility

It turned out to be an intensely uneventful day for the bond market after some initial volatility.  Economic data was limited, at best, with only Residential Construction to occupy the 8:30am time slot.  Bonds found buyers despite Fed's Bullard talking about "3 more hikes," with the positive momentum especially noticeable at the 9:30am NYSE open.  Late day selling in EU bonds was not enough to bring US bonds into negative territory.  With that, the broader sideways range remained easily intact and markets continue waiting for something important enough to prompt a breakout.

Econ Data / Events
    • Housing Starts
      • 1.42m vs 1.40m f'cast, 1.432m prev
    • Building Permits
      • 1.413m vs 1.45m f'cast, 1.55m prev
Market Movement Recap
08:52 AM

Modestly stronger overnight. 10yr down 1.3bps at 3.593 and MBS up an eighth of a point.

11:00 AM

Decent gains heading into the NYSE session.  10yr down 5bps at 3.557.  MBS up 5 ticks (.16). 

02:44 PM

Some weakness in the PM hours, but still stronger on the day.  10yr down 3bps at 3.578.  MBS up 3 ticks (.09).

04:38 PM

A bit of late day weakness in MBS, due mainly to illiquidity.  5.0 coupons down 1 tick (0.03).  10yr yields right in line with the previous update.