Big losses in both stocks and bonds today as traders take their seats for next week's big show. Month-end trading volumes were huge. It was the single biggest trading day since June. After 2016, no one wants to be anything other than nimble on election week.
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20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)
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Core PCE Inflation, annual 1.5 vs 1.7 f'cast, 1.4 prev
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Chicago PMI 61.1 vs 58.0 f'cast, 62.4 prev
Mixed performance overnight amid heavy volume. Stronger in Asia. Weaker in Europe. Nearly unchanged to start the domestic session and slightly stronger since then. No reaction to data. A few big, obvious, month-end trades helping so far.
Bonds and stocks both lost ground in a fairly big way in the morning hours as traders decided they'd much rather be in cash heading into election week. Mid-day hours were fairly flat and weakness returned at the 3pm CME close. Month-end volume was massive--biggest in 4+ months--adding emphasis to the bond market's defensive approach to the week ahead.
MBS Market Alerts
