Uneventful Ceiling Defense

On a day where 10yr Treasury yields bounced multiple times at the 4.19% technical level, and considering the recent relevance of that particular level, we might expect to find that the intraday trading story was interesting or exciting.  This could possibly be argued for the early morning trading surrounding the release of CPI seasonal revisions, but that played out in a matter of minutes and had nothing to do with 4.19%.  The rest of the day was spent grinding sideways just under that ceiling.  MBS did slightly better than Treasuries due to the monthly UMBS 30yr settlement process (not a reliable pro or con, but a pro this time around).

Econ Data / Events
    • Jobless Claims
      • 218k vs 220k f'cast, 227k prev
Market Movement Recap
10:07 AM

Volatility after CPI revisions, but actual selling around 9:20-9:30am ET.  Holding ground under the 4.19% ceiling, currently up 1.9bps at 4.177.  MBS are down 3 ticks (.09).

01:15 PM

Off the weakest levels now.  MBS down only 3 ticks (.09).  10yr up 2.3bps at 4.181.

03:25 PM

Slowly grinding toward less red levels.  MBS down only 2 ticks (.06) and 10yr up 1.9bps at 4.177.