Which CPI Number Matters Most and How Wide is The Potential Range of Reactions?
Monday turned out to be an intensely sideways trading session for MBS and mostly sideways for the broader bond market. There were no big ticket events and no major market-moving developments. Attention has been and continues to be squarely focused on Tuesday morning's CPI data. Today's video discusses the range of potential outcomes for bonds as well as the CPI numbers that matter most.
Mostly flat in the overnight session with modest gains in early trading. MBS up 3 ticks (.09) and 10yr yield down 2bps at 3.721.
AM rally attempt faded after 10am. Right in line with levels from the previous update.
Still sideways. Very light volatility. Trading levels in line with previous update.