Traders Move to Sidelines Ahead of Fed Announcement

September's big Fed announcement doesn't hit until next Wednesday, but it's not too early for markets to freak out about it a little bit.  The fear is expressed in the form of a move to the sidelines for both stocks and bonds.  In other words, both sides of the market sold off today.  Treasuries fared a bit better, and MBS fared better still (2.0 coupons only dropped an eighth of a point by 4pm).  10yr yields thought better of breaking too far above the 1.37% technical level and have been settling there in the after hours session.  Next week remains anyone's game with a range breakout being all but guaranteed. 

Econ Data / Events
Market Movement Recap
09:00 AM

Modestly weaker overnight  with selling pressure picking up as we enter the 9am hour.  10yr is up almost 3bps at 1.363 and MBS are down an eighth of a point--well below the lowest prices of the week.

01:28 PM

Bonds found footing shortly after 10am and 10yr yields have slowly worked their way back to the 1.37% technical level.  MBS are down just over an eighth of a point now after being down as much as a quarter point at the weakest levels.

04:22 PM

Healing continues as time ticks down on the trading session.  No huge changes from the last update, but MBS have improved another tick (0.03).  Volatility has been nonexistent.