Hurry Up And Wait

Monday saw the lowest volume and lightest volatility of the year so far, but Tuesday turned out to be a carbon copy in many regards.  The only notable difference was a weaker hand-off from overseas markets following more hawkish central bank talk out of Japan and hawkish speculation over the upcoming ECB announcement.  Domestic hours were intensely lacking in any actionable data or headlines.  Bonds found their footing by mid-day and recovered modestly by the close.  MBS lost about an eighth of a point and 10s were up less than 3bps.  This leaves the gentle, corrective uptrend intact and leaves us waiting for more relevant economic data and other scheduled events.

Econ Data / Events
    • Existing Home Sales
      • 3.78m vs 3.82m f'cast, 3.82m prev
    • Consumer Sentiment
      • 78.8 vs 70.0 f'cast, 69.7 prev
    • 1yr inflation expectations
      • down 0.2%
    • 5yr inflation expectations
      • down 0.1%
Market Movement Recap
10:12 AM

Weaker overnight, led by Europe.  10yr up 2.9bps at 4.136.  MBS down 6 ticks (.19).

11:09 AM

Weakest levels just before 11am with MBS down 7 ticks (.22) and 10yr up over 4.15% briefly.  Bouncing back a bit now, but just barely.

02:47 PM

Slightly stronger, but still in weaker territory.  MBS down an eighth and 10yr up 2.9bps at 4.136.

04:35 PM

Little changed since last update.  MBS down an eighth.  10yr up 3.3bps at 4.14