Canada Doesn't Really Matter. Bring on CPI and The Fed

The day began with a hunt for the mystery market mover behind the 8:30am spike in Treasury yields.  Once it was revealed to be Canada's jobs report, US traders could only laugh as the two Canadian events that had a visible impact on the US bond market this decade happened only 2 days apart, and all on a week with Canadian wildfires already very much in focus in New York. While it's true these events mattered on this week's small scale, the market is infinitely more interested in next week's CPI and Fed Announcement.  

Econ Data / Events
    • Jobless Claims
      • 261k vs 235k f'cast
Market Movement Recap
09:26 AM

Weaker overnight with some recovery after Canadian jobs report.  10yr still up 3bps at 3.751.  MNBS down nearly a quarter point

09:47 AM

gradually sliding to the weakest levels of the day with 10s up 5bps to 3.77 and MBS down 10 ticks (.31).

11:27 AM

nice bounce back for MBS, now down only 3 ticks (.09).  Treasuries still up 3bps at 3.75.

03:52 PM

Flat afternoon.  MBS down 5 ticks (.16) in 5.0 coupons and 2 ticks (0.06) in 5.5 coupons.  10yr up 3bps at 3.75.  

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