Bonds Turn Green Despite Plenty of Volatility

It was touch and go in the mid-day hours as early stability (modest gains, even) gave way to steady selling.  Headlines from Fed's Bostic (he's not sure they'll need to cut again in Nov) caused yields to pop to the highs of the day just before the 30yr bond auction.  After a decent auction, bonds calmed right down and slowly inched back into positive territory.  That's a pretty decent result considering the 0.3 vs 0.3 core CPI reading this morning and the higher jobless claims number being subject to weather-related doubts.

Econ Data / Events
    • Jobless Claims
      • 258k vs 230k f'cast, 225k prev
    • Core CPI M/M
      • 0.3 vs 0.2 f'cast, 0.3 prev
    • Y/Y Core CPI 
      • 3.3 vs 3.2 f'cast, 3.2 prev
Market Movement Recap
09:20 AM

Modestly weaker overnight with mixed trading after data.  MBS up 2 ticks (.06) and 10yr up 1.1bps at 4.088

11:16 AM

Back into weaker territory with MBS down 1 tick (.03) and 10yr up 1.5bps at 4.093

12:50 PM

Under pressure on Bostic comments (open to skipping rate cut in Nov).  10yr up 2.1bps at 4.099.  MBS down 2 ticks (.06).

03:43 PM

Nice recovery after 30yr bond auction.  10yr now down 0.3bps on the day at 4.075 and MBS up 2 ticks (0.06).