Mixed Performance. Data Hurt. Auction Helped. Little Changed

In the bigger picture, bonds found resistance before 10yr yields managed to break below 4.19, but remained well under the 4.32% ceiling after yesterday's weakness.  Today began slightly stronger, but shifted weaker after the Durable Goods data.  The home team rallied after the 1pm Treasury auction came out on the strong side and trading levels trickled just barely into positive territory.  Wednesday is the quietest day of the week for econ data, but also the last day of Treasury auctions and the last full trading day of the month/quarter.  Translation: data driven volatility is unlikely, but random volatility surrounding the auctions and month-end trading could make things interesting.

Econ Data / Events
    • Durable Goods
      • 1.4 vs 1.1 f'cast, -6.9 prev
Market Movement Recap
08:52 AM

Slightly stronger overnight and now a hair weaker after data.  MBS down 2 ticks (.06) and 10yr up 0.8bps at 4.257

11:26 AM

MBS outperforming, down only 1 tick (.03).  10yr unchanged from last update.

01:09 PM

Stronger after 5yr auction.  MBS up 2 ticks (.06) and 10yr down 1.1bps at 4.238

03:32 PM

Hanging out near strongest levels.  MBS and 10yr at same levels as last update.