|This email was sent to you by:|
Tonya W. Kenon |
Mortgage News Daily
Email alerts, such as this one, are a free service
provided by Mortgage News Daily. If you would like to receive an alert when important news breaks
please register to join our community
Bond Markets Rally Following Durable Goods Data
Posted to: Micro News
Monday, August 26, 2013 9:06 AM
The overnight session was so quiet and flat that it only deserves one sentence of mention. The only trading of consequence began after this morning's Durable Goods report which came in significantly weaker than expected. All the internal metrics were weaker to boot (whereas one can usually find at least one counterpoint to the suggestion of the headline).
In this case, however, the counterpoint may be the volatile nature of the report itself, combined with the fact that the past three reports had been strongly positive. The last time this report came in positive at least 3 months in a row was last summer and the 'miss' that followed was even bigger than today's.
Additionally the 4-week moving average actually ROSE.
Bottom line, it's not as clear a signal as many of this week's other reports would be, should they happen to miss by a similar margin.
All that notwithstanding, it has been resulted in a moderate rally for MBS and Treasuries, thought the first bounce may already be in. 10's moved down to 2.784 and ar back up to 2.798 currently. Fannie 4.0s hit 103-03 and are now at 103-01--still 8 ticks higher day-over-day. There are no more major economic reports on tap for today.
More from MND:
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.