Bonds Feeling Defensive Despite Trump's Demands For Lower Rates

Bonds lost ground this morning despite slightly higher Jobless Claims. There are no obvious cases for causality apart from markets generally bracing for the impact of impending fiscal changes.  Some feel that tariffs will increase inflation.  Others feel that separate policies will increase growth (or decrease revenue). None of the above is good for rates.  Notably, Trump said he would "demand" lower interest rates in his Davos speech today and 2yr Treasury yields actually dropped enough to notice, but not by enough to suggest the market is reading much into it. 

Econ Data / Events
    • Jobless Claims
      • 223k vs 220k f'cast, 217k prev
    • Continued Claims
      • 1899k vs 1860k f'cast, 1853k prev
Market Movement Recap
08:31 AM

Slightly weaker overnight and no major change after data.  MBS down an eighth and 10yr up 2.3bps at 4.634

01:52 PM

Additional weakness into 11am hour but sideways since then.  MBS down 5 ticks (.16) and 10yr up 3.7bps at 4.469

04:08 PM

Still sideways after AM weakness.  MBS down 6 ticks (.19) and 10yr up 3.3bps at 4.645