|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
Month-End Tradeflows May Prove Supportive; So Far So Good
Posted to: Micro News
Friday, August 30, 2013 9:27 AM
With the first piece of economic data out of the way, bond markets are just slightly into positive territory. The overnight session was exceptionally flat until 7am, though opened slightly weaker in Asia. Decent data late in the European session sent Bund yields moderately higher with Treasuries giving a bit of chase.
Treasuries have disconnected in a good way since then, falling back below the low yields of the session and retesting them currently. This has been a friendly environment for MBS, which opened in line with yesterday's close and have gained a few ticks since then.
The next data hits at 9:45am with Chicago PMI (though this can sometimes hit at 9:42am in the form of an early market reaction if the data deviates much from consensus (some traders get it 3 minutes early). Consumer Sentiment follows 10 minutes later.
Both of these are relevant reports--more so than Incomes and Outlays earlier this morning--but unless they cause big moves weaker for bonds, we're hoping for month-end index buying to provide a supportive enough undertone to get us into the 3-day weekend with minimal damage. So far so good, but we'll reassess after data.
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.