Bonds Vote To Hold The Range Despite Stronger Data

10yr yields tested multi-month highs overnight (1.573), but improved gradually leading up to the domestic session.  Bond bulls held their breath at 8:15am ET when ADP employment data came out stronger than expected, but traders took it in stride.  After a few moments of weakness, yields continued falling into the 10am hour.  The rest of the day was flat despite some traction on a temporary debt ceiling extension deal.

Econ Data / Events
  • Fed MBS Buying 10am, 1130am, 1pm

  • ADP Employment 568k vs 428k f'cast, 340k prev

Market Movement Recap
08:30 AM

Weaker again overnight with 10s hitting multi-month highs of 1.573%.  They've since recovered to 1.534 (up less than a bp).  MBS are down only 2 ticks (0.06).  ADP data taken in stride.

09:36 AM

Addition recovery heading into the 9am hour with 10yr yields now DOWN on the day, albeit only slightly, at 1.521%.  MBS are within 1 tick of 'unchanged.'

01:17 PM

Very flat since this morning's friendly correction.  Levels are right in line with the last update and no market movers in sight.

03:52 PM

Bonds weakened briefly and modestly after news on a temporary debt ceiling extension, but are back in line with the previous levels (10yr yields at 1.522 and MBS up 1 tick).