Bonds were moderately stronger overnight and then weaker after the 10am JOLTS data. The data itself was mixed with Job Openings higher (bad for rates) and job quits lower (good for rates). The headline took precedence and pushed yields back into higher territory on the day. Selling ebbed in the PM hours and MBS ultimately made it back to positive territory. Headlines regarding the Senate taking up the budget bill are ramping up, but with no discernible impact on the bond market so far. Bottom line, a roughly unchanged close in bonds requires very little explanation. On to the next data with ISM Services on Wednesday!
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- Job Openings
- 7.391m vs 7.1m f'cast, 7.2 prev
- Job Quits (lower is better for rates)
- 3.194m vs 3.332m prev
- Job Openings
Slightly stronger overnight. MBS up 2 ticks (.06) and 10yr down 3.7bps at 4.409 ahead of JOLTS data.
Weaker after data. MBS unchanged and 10yr up half a bp at 4.441
10yr yields are up 2.4bps at 4.47 and MBS down nearly an eighth on the day.
Decent recovery. MBS up 2 ticks (.06) and 10yr close to unchanged at 4.451
MBS Market Alerts
