Absence of Additional Weakness

Today's trading session doesn't really qualify as a strong one for the bond market, but we could probably justify saying there was an absence of additional weakness.  Even that looked like it would be a tall order this morning as yields technically hit another super long term high before settling down into the afternoon.  Existing Home Sales data was at the scene of the move, but we don't see it as a market mover.  Best case scenario: sellers are finally getting tired and things will either stay flat or correct modestly ahead of Friday's Jackson Hole talk from Powell.

Econ Data / Events
    • Existing Home Sales
      • 4.07m vs 4.15m f'cast, 4.16m prev
Market Movement Recap
10:09 AM

Stronger in Europe, but giving up all gains in domestic trading.  10yr unchanged at 4.344.  MBS down an eighth of a point.

11:42 AM

10yr back into positive territory, down 2bps at 4.322.  MBS roughly unchanged.

03:31 PM

MBS off the highs, but liquidity is distorting the move.  6.0 coupons down 1 tick (.03) on the day and about an eighth from intraday highs.  10yr down 1.2bps at 4.33, but off the most recent lows of 4.314.