Bond Markets Slightly Weaker After 10am Data
Good news first: we're continuing to see a good amount of resilience in the face of stronger-than-expected economic data. Most recently, the Philly Fed Survey at 10am came in at 9.0 vs a 3.8 forecast. Despite the beat, bond markets haven't moved into much weaker territory.
Weak internals in the data are likely helping in that regard along with another weak reading in Existing Home Sales out at the same time.
MBS shed 2 ticks after the data and bounced back 1 tick since then. 10yr yields moved up to 2.79+ and have eased back down to 2.784.
The reaction leaves the implied momentum somewhat up in the air for the rest of the day. The tone has been more sideways than anything so far, but current levels are closer to giving negative cues than positive.