Bonds Came Here to Chew Gum and Sell Off, And They're All Out of Gum

There comes a time in protracted bond market selling sprees where the momentum takes on a glacial quality.  Intraday volatility may pay some heed to discrete big-ticket events, but the rest of the day is spent moving steadily toward higher yields in a mindless and disconnected way.  The past week and a half is a perfect example and today was no exception.  Yields were actually at their lows of the day an hour after the AM data, so we can't really blame it for the sell off that took 10s to the brink of their highest levels since 2007 (or mortgage rates to their highest levels in more than 20 years).

Econ Data / Events
    • Jobless Claims
      • 239k vs 240k f'cast, 248k prev
    • Philly Fed
      • 12 vs -10 f'cast, -13.5 prev
      • prices paid 20.8 vs 10.1 f'cast, 9.5 prev
Market Movement Recap
08:51 AM

10s up to 4.312 in Asia, but back under 4.3 in early US trading.  MBS unchanged in 6.0 coupons, but illiquid at times (recently down 6 tick or 0.19).

10:07 AM

Weakest levels now.  MBS down a quarter point and 10yr up 4.4bps at 4.302.

02:38 PM

Losses may be leveling off now after a bit more selling earlier.  10yr up 5.4bps at 4.312.  MBS down 7 ticks (.22).