On several occasions in the past, we've seen pronounced reactions to big beats/misses in New Home Sales data.  Today's miss is every bit as big as past 'big misses' (the ones that resulted in big moves), yet we're not seeing much of a response.  Fannie 3.5s have only recovered 2 ticks and 10yr yields are only down to 2.5052 from 2.518. 

Does this suggest a stronger inherent bias back toward higher yields?  Or do the big miss and big revision to last month's New Home Sales data suggest that it's too volatile at the moment to pay much mind?  Maybe some of both?  Whatever the case, the modest bounce is enough to alleviate the reprice risk that had been building ahead of the data.  Here's a run-down of the report:

• June New Home sales 406k vs 479k forecast (annual rate)
• In percentage terms -8.1 percent is biggest drop since July 2013.
• May revised to 442k from 504k
• Northeast down 20 percent, Midwest -8.2, South -9.5, West -1.9
• Supply at 5.8 months, highest since October 2011

Jobless Claims were significantly stronger than expected.

• Claims 284k vs 308k forecast, 303k previously
• Continued Claims 2.5mln vs 2.508mln previously, lowest since June 2007

Bond markets were already quite a bit weaker overnight, mostly following German Bunds' bounce off recent lows (another one).  10yr yields bounced in a similar fashion between yesterday and today.

For their part, MBS aren't under quite as much pressure as Treasuries with Fannie 3.5s down only 7 ticks in price compared to 10yr Treasuries' 11 ticks.  The next significant data is New Home Sales at 10am.