Morning Volatility, Afternoon Drift
Morning Volatility, Afternoon Drift
Bonds began the day in modestly weaker territory before undergoing a bit of volatility after the morning economic data. The two reports in question were Jobless Claims, which voted in favor of lower yields, and the Philly Fed Index, which made the opposite case. Bonds wend both ways before the bulls ultimately took control and got yields back to unchanged levels just before 11am. After that, it was a slow grind to the weakest levels of the day, but all of the above played out in a range that was just as narrow as the last few days.
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- Jobless Claims
- 243k vs 230k f'cast, 223k f'cast
- Continued Claims
- 1867k vs 1860k f'cast, 1847k prev
- Philly Fed Index
- 13.9 vs 2.9 f'cast, 1.3 prev
- Philly Fed Prices Paid
- 19.8 vs 22.5 prev
- Jobless Claims
Initial gains after Jobless Claims data, but pulling back a bit now. 10yr up over 2bps at 4.18+. MBS down 3 ticks (0.09)
Back into positive territory in MBS, up 1 tick (.03). 10yr still up 1.2bps at 4.17, but well off the highs.
slightly weaker over the past few hours. MBS down 2 ticks (.06) and 10yr up 2.3bps at 4.18
heading out at the weakest levels. MBS down 6 ticks (.19) and 10yr up 4.4bps at 4.201