Friday was a logically friendly day thanks to slightly lower CPI. But no matter what happened on any of the other 4 days, this week was all about bonds ending up at much stronger levels in spite of a jobs report that should have sent rates higher on Wednesday. Ironclad justification remains impossible, but the leading theory involves heavy liquidation mode in stocks/commodities on Thursday. Holiday weekend positioning could also be a factor. As such, we'll learn a lot more next Tuesday--especially if stocks find a reason to stage a big bounce.
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- m/m CORE CPI (Jan)
- 0.3% vs 0.3% f'cast, 0.2% prev
- m/m Headline CPI (Jan)
- 0.2% vs 0.3% f'cast, 0.3% prev
- y/y CORE CPI (Jan)
- 2.5% vs 2.5% f'cast, 2.6% prev
- y/y Headline CPI (Jan)
- 2.4% vs 2.5% f'cast, 2.7% prev
- m/m CORE CPI (Jan)
Stronger After CPI and sideways since then. MBS up roughly and eighth and 10yr down 4bps at 4.06
Losing ground modestly. MBS still up 2 ticks (.06) and 10yr still down 3.5bps at 4.066
MBS up an eighth and 10yr down 4.7bps at 4.053
MBS Market Alerts
