After several days of pronounced volatility, bond markets are taking it easy by comparison so far today. The overnight session had the nostalgic feel of the days before the recent emerging market turmoil where Treasuries would stay a bit more narrow during Asian hours and grow only slightly more volatile into the European session.
The overnight range was an acceptable 3bps in 10yr yields and MBS opened 3-4 ticks weaker. Both MBS and Treasuries weakened just a bit more following the morning's economic data, though it wasn't especially inspiring in that regard.
Our morning update noted that the only positivity in Jobless Claims was the drop in the Continued Claims component, and the rest of the inspiration for bond market weakness would have to be chalked up to the "as-expected" GDP data, though it did have strong final sales. At 10am, exceptionally weak Pending Home Sales didn't really do anything to help, but neither did it hurt. We're currently still in the same range established between the open and 9:15am, but seem to be having more of a problem making gains.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing
is available via MBS Live.
| MBS || |
96-24 : -0-05
101-02 : -0-05
104-15 : -0-04
| Treasuries || |
0.3632 : +0.0122
2.7113 : +0.0363
3.6529 : +0.0319
| Pricing as of 1/30/14 11:06AMEST |
Morning Reprice Alerts and Updates
9:02AM : Bond Markets Slightly Weaker After First Round of Data
Live Chat Featured Comments
Matthew Graham : "RTRS- US ADVANCE Q4 GDP +3.2 PCT (CONSENSUS +3.2 PCT), Q3 +4.1 PCT; FINAL SALES +2.8 PCT (CONS +3.9 PCT), Q3 +2.5 PCT "
Matthew Graham : "RTRS- US Q4 BUSINESS INVENTORY CHANGE +$127.2 BLN, LARGEST SINCE Q1 1998 (Q3 +$115.7 BLN) "
Matthew Graham : "RTRS- COMMERCE DEPT SAYS GOVERNMENT SHUTDOWN REDUCED Q4 GDP BY ABOUT 0.3 PERCENTAGE POINT"
Matthew Graham : "RTRS- US JOBLESS CLAIMS ROSE TO 348,000 JAN 25 WEEK (CONSENSUS 330,000) FROM 329,000 PRIOR WEEK (PREVIOUS 326,000) "
Matthew Graham : "RTRS- US CONTINUED CLAIMS FELL TO 2.991 MLN (CONS. 3.020 MLN) JAN 18 WEEK FROM 3.007 MLN PRIOR WEEK (PREV 3.056 MLN) "
Hugh W. Page : "Pretty Ho Hum I think and the #'s show some slowing as well. 2013 Real GDP 1.9 vs. 2.8 in 2012. Price indices down some yr over yr as well."
Andy Pada, Jr. : "doesn't seem like economic improvement to me."
Sung Kim : "people are saying that the inventory buildup is unsustainable"
Matthew Graham : "RTRS- U.S. DEC PENDING HOME SALES INDEX -8.7 PCT (CONSENSUS UNCHANGED) TO 92.4, LOWEST SINCE OCT 2011-REALTORS "
Andy Pada, Jr. : "here comes another weather related result"
Matthew Graham : "RTRS- U.S. DEC PENDING HOME SALES -8.8 PCT FROM DEC 2012 "
Matthew Graham : "" Pending home sales measurably dropped in December, with abnormal weather partly inhibiting home shopping in much of the U.S., according to the National Association of Realtors""