The day began with modest improvements, helped along by tough talk from ECB President Draghi. While the timing of the best movement seems to coincide with the 8:30am Jobless Claims data, it was mostly to do with Draghi.
More importantly, it was mostly a non-issue. Even as Treasury yields stretch up to their highs of the day presently, we remain range-bound, well inside yesterday's highs and lows (albeit closer to the highs). MBS are a bit less interested in the volatility--not uncommon on "roll" day (Fannie and Freddie 30yr Fixed MBS Settlement coming up on Monday and today is the last day to trade January coupons, hence "rolling" to February's tonight).
Jobless Claims wasn't likely to be a market mover today. Even the small amount of Draghi-related movement was a surprise. In hindsight, it looks like US bond markets took a brief detour at the request of European markets and are now back to yesterday afternoon's micro-range.
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