Small Scale Volatility But Very Sideways Overall

There were a few instances of volatility in the bond market today with several of the larger moves lining up with larger doses of volume.  In a "data dependent" world, it's odd to consider that none of the notable moves had anything to do with economic data.  Instead, it was a surge in corporate bond issuance around 9am causing some selling and the 3pm close causing some buying.  And EVEN THEN, those events added up to a pittance of activity and drama.  Bonds managed to clock modest gains, but that only served to solidify the sideways trend that's been in place since the Feb 13 CPI data.

Econ Data / Events
    • Q4 GDP (revision)
      • 3.2 vs 3.3 f'cast
    • GDP PCE Price Index
      • 2.1 vs 2.0 f'cast
    • Wholesale Inventories
      • -09.1 vs 0.1 f'cast, 0.4 prev
Market Movement Recap
08:58 AM

Modestly stronger overnight. No reaction to data.  Giving up some gains now.  10yr still down almost 1bp at 4.295.  MBS up 2 ticks (.06).

11:42 AM

Little changed from previous update after some initial volatility.  10yr down 1.2bps at 4.291.  MBS up 3 ticks (.09).

03:27 PM

Stronger during the 3pm CME close (month-end).  10yr down 3.5bps at 4.268.  MBS up a quarter point in 5.5 coupons and an eighth in 6.0 coupons.