Bond markets back in positive territory after Retail Sales and Jobless Claims
Both of this morning's 8:30am data sets were bond-market-friendly. Trading levels were slightly weaker overnight and heading into the data, but both MBS and Treasuries have moved into positive territory afterward.
- 317k vs 310k forecast
- Continued Claims 2.614 mln vs 2.598 mln
- share of morning market movement: 35%
- May Retail Sales +0.3 vs +0.6 forecast
- April revised to +0.5 from +0.1
- Excluding Auto sector +0.1 vs +0.4 forecast
- Excluding Auto/Gas/Building Materials/Food +0.0 vs +0.4 forecast
- share of morning market movement: 65%
The gains have been nothing if not moderate and bonds are only barely in the green at the moment. The strong revisions in the Retail Sales data rob it of some of it's bond market benefit.
Fannie 3.5s are now 101-26, up 2 ticks on the day. They were as low as 101-21 before the data. 10yr yields are down 0.7bps on the day at 2.6331. They were as high as 2.659, which is an important technical level (2.66%).