Bonds Boosted by Data and Well-Received Auction

Jobless Claims data doesn't normally move the market, but it did this morning, even if only by a bit.  It was enough to turn modest losses into modest gains ahead of the afternoon's 30yr bond auction.  Here too, hopes were not high for a big reaction.  After all, there was no real reaction to yesterday's 10yr auction.  But things were different this time as traders bid more aggressively for the longer duration.  With that, we had two modest-but-noticeable rallies that left trading levels right in line with this week's range after starting out at the highest yields of the week.

Econ Data / Events
    • Jobless Claims
      • 231k vs 210k f'cast, 209k prev
Market Movement Recap
08:31 AM

Modestly weaker overnight, but back into the green after claims data.  MBS unchanged.  10yr down 1bp at 4.487

12:17 PM

Steady near stronger levels.  MBS up 3 ticks (.09) and 10yr down 1.2bps at 4.486

01:04 PM

Best levels of the day after 30yr bond auction.  10yr down 2.4bps at 4.472.  MBS up an eighth.

04:32 PM

Sideways and strong into the close.  MBS up just over an eighth and 10yd down 3.9bps at 4.458.