Both the 830am and 10am sets of economic data left MBS incrementally better off. At 830am, it was primarily the big jump in Continued Claims in the Jobless Claims data that prompted the bond market positivity. At 10am, it was a tepid Philly Fed Index (due to weak internals and only a small improvement in the headline).
The net effect was a rally that almost made it to 3/8ths of a point versus yesterday's latest levels, but has since fallen back to a quarter point gain (in terms of price).
Bernanke gave his talk at Brookings, but it was more of a broad-scale retrospective for the financial crisis and less to do with impending monetary policy decisions.
Tradeflows in Treasuries are currently quite clear in their suggestion of resistance around 2.84. While we wouldn't necessarily assume this is an impenetrable floor, it's a good level to watch. A significant break below would be a positive sign for the trading range.
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