Today has brought a decent dose of volatility to bond markets. Overnight trading saw Treasury yields rise somewhat abruptly during Asian hours. The European hours took things in the other direction--so much so, that MBS and Treasuries were in positive territory at the open.
Jobless Claims data was weaker than expected and Import Prices were lower than expected. Both of these things are good for bond markets. MBS rose from 102-15 to 102-22 by 9:30am (incidentally, the time stock markets open for cash trading). Since then, bonds have been leaking back toward unchanged levels, but remain just barely in positive territory.
The next key event of the day--and one that could be behind some of the leakage--is the 30yr Bond auction coming up in just under an hour. This is also the last auction of the week, which can occasionally result in a more positive response compared to other auctions, all other things being equal.
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