Both MBS and Treasuries have gone no higher or lower than they did yesterday, though they've made relatively quick work of exploring most of those ranges. Treasuries were fairly calm overnight despite significantly weaker economic data out of Germany and the lowest inflation reading since early 2009 for Italy.
Domestic trading began with bonds roughly in line with Monday's 5pm levels. The first move was into stronger territory, but this reversed as a part of a concerted move between global equities markets and European bond markets.
The weakness in US Treasuries was keeping decent pace with the rest of the market until several rather large block trades came through around 10:10am. Could these have been in response to 10am JOLTS data? No...
It's not uncommon for some sources to discuss the Job Openings and Labor Turnover Survey (JOLTS) as a market mover, and this may well be the case today as the Treasury weakness corresponded with strong JOLTS data. BUT it is absolutely not a market mover today. There was LESS than zero response to the 10am data at 10am. 'Conjecture' is the only case to be made if we imagine that the bigger block trades 10 minutes later were somehow waiting to see how June's employment data was rounded out. That raises another interesting point about JOLTS. It's for JUNE! That was a while ago now! Not a market mover in the here and now!
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