OK Rates... Explain Yourself!

Today's Fed Minutes were uneventful with a volume spike that didn't even eclipse those seen after today's 8:20am CME open or the 9:15am Industrial Production data.  That puts them in very forgettable company among potential market movers.  Nonetheless, bonds sold off moderately into the afternoon.  This has less to do with things that happened today and more to do with the general trend.  Inflation is moving into the ensemble cast while growth, issuance, and the yield curve are getting more lines.  

Econ Data / Events
    • Housing Starts
      • 1.452m vs 1.448m f'cast, 1.434m prev
    • Building Permits
      • 1.442m vs 1.463m f'cast, 1.441m prev
    • Industrial Production
      • 1.0 vs 0.3 f'cast, -0.5 prev
Market Movement Recap
10:12 AM

Weaker at 8:20am CME open, but stronger now.  10s down 1.6bps at 4.203 and MBS up 3 ticks (0.09).

11:49 AM

Giving up some ground now with MBS down 2 ticks (0.06) and 10yr yields up 1.4bps at 4.233.

01:35 PM

Weakest levels ahead of Fed Minutes.  10yr up 2.9bps at 4.248.  MBS down an eighth (.125).

02:17 PM

Slightly weaker after Fed Minutes, but not a huge move.  10yr up 3.5bps at 4.254.  MBS down 7 ticks (.22)

04:18 PM

More selling.  10yr up 5bps at 4.268 and MBS down just over a quarter point.