Fairly Resilient Despite Bumpy Auction

The relevant morning econ data was limited to Jobless Claims. While the weekly and continuing numbers were both higher than expected, it wasn't a big enough miss to spark any sort of decisive rally in bonds. MBS lost ground heading into the PM hours and lost some more ground after a poorly received 30yr bond auction. But whereas the auction could have been used as a front for additional selling, bonds generally did a decent job of holding their ground in the last few hours of the day. Friday's calendar is empty. This doesn't mean we won't see any volatility--simply that it could not be driven by scheduled events.

Econ Data / Events
    • Jobless Claims
      • 226k vs 221k f'cast, 219k prev
    • Continuing Claims
      • 1974k vs 1950k f'cast, 1936k prev
Market Movement Recap
08:31 AM

ho-hum Jobless Claims.  No reaction.  10yr up 0.3bps at 4.231 MBS up 1 tick (.03)

11:55 AM

Still flat.  MBS unchanged and 10yr unchanged at 4.227

01:06 PM

weaker after 30yr auction.  MBS down 2 ticks (.06) and 10yr up 1.7bps at 4.245

02:55 PM

avoiding sharper losses.  MBS down 3 ticks (.09) and 10yr up 1.5bps at 4.243

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