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Bond Markets Looking for Support After Overnight Selling
Posted to: Micro News
Tuesday, September 03, 2013 9:14 AM
Simply making it through the weekend without any overt military action in Syria was enough for equities futures to bounce higher and Treasury futures to bounce lower at the start of yesterday's overnight session. Strong European economic data yesterday added to the bond market weakness early yesterday morning with the worst levels coming in just after 4:30am.
Treasuries have bounced around in a fairly choppy, sideways range since then, pushing on an implied ceiling around 2.85, currently at 2.84. This is in the upper-middle zone of the range-trade that's characterized the 2nd half of August (from 2.71 to 2.93).
MBS opened several ticks weaker than Friday's latest levels and have quickly gotten caught up with most of the weakness in Treasuries. Fannie 4.0s are down 8 ticks so far at 102-23.
The first significant data arrives at 10am this morning with ISM Manufacturing, expected to ease to 54.0 from 55.4 previously.
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