Just a Bit More Pre-Fed Positioning

It ended up being a fairly uneventful day for the bond market despite starting off on a somewhat rocky note.  MBS suffered from illiquidity in the first 2 hours of the trading day and 10yr yields pushed highs of 3.92 on two occasions before dropping below 3.90 after the 3pm close.  Traders were squaring positions ahead of tomorrow's Fed announcement and also building in concessions for the Treasury auction cycle.  

Econ Data / Events
    • Consumer Confidence
      • 117 vs 111.8 f'cast
Market Movement Recap
09:44 AM

Weaker overnight but finding footing.  10yr up 1.4bps at MBS down 3 ticks (.09).

10:14 AM

A bit more weakness after Confidence data.  MBS down 5 ticks (.16) and 10yr up 2.2bps at 3.9

02:47 PM

MBS staying sideways with 5.5 coupons down an eighth.  Treasuries underperforming with 10yr yields up 3.4bps at 3.912.

04:26 PM

Mini recovery in Treasuries with 10yr now up only 1.2bps on the day at 3.89.  MBS are down 2 ticks.