Slightly Weaker Drift, But Broadly Uneventful

Friday may as well have been a 4th weekend day for the bond market.  Volume and liquidity were obviously in holiday mode.  Trading levels were basically flat, although it might not feel that way if you're seeing MBS prices end the day down more than an eighth of a point.  It's unclear whether we're seeing actual weakness at the end of the day or an incidental expression of extremely thin liquidity. Even if it's "real," it's still not bad considering where we were on Tuesday afternoon.  

Econ Data / Events
    • Building Permits
      • 1.483m vs 1.460m f'cast
    • Housing Starts
      • 1.499m vs 1.320m f'cast
Market Movement Recap
09:37 AM

stronger overnight but giving up those gains in the past hour.  MBS now unchanged and 10yr down half a bp at 4.609

01:57 PM

Sideways at the lows.  MBS down 1 tick (.03) and 10yr down half a bp at 4.608

04:05 PM

Weakest levels of the day.  MBS down an eighth of a point and 10yr up 0.4bps at 4.617