About as Uneventful as it Could Have Been

Any time we have a huge day of movement, regardless of the reason, the odds of bigger movement increase for the following days.  Today was especially tense because there was another inflation report that stood the chance to add insult to yesterday's CPI injury.  But today's PPI came in right in line with forecasts and bonds subsequently enjoyed a mostly sideways trading day--at least relative to yesterday.  Looked at in a 1-day vacuum, there were swings of more than a quarter point in MBS in both directions.  Lenders were clearly geared up for such things considering the lower-than-average reprice activity.

Econ Data / Events
    • Core PPI
      • 0.2 vs 0.2 f'cast, 0.3 prev
    • Headline PPI
      • 0.2 vs 0.3 f'cast, 0.3 prev
    • Jobless Claims
      • 211k vs 215k f'cast, 222k prev
Market Movement Recap
08:48 AM

MBS are up an eighth of a point in UMBS 6.0 coupons and 2 ticks (.06) in 5.5 coupons.10yr down 1bp on the day at 4.534.

10:57 AM

More than a quarter point off the best levels in MBS and now down roughly an eighth on the day.  10yr up 2.7bps at 4.574

01:04 PM

30yr bond auction was "OK," but not great.  little change so far.  10yr up 2.3bps at 4.57.  MBS down 3 ticks in 6.0 coupons

04:36 PM

Nice recovery into 2pm, but losing ground again into the close.  MBS down 2-4 ticks (.06-.125) and 10yr up 3.7bps at 4.584

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