Bonds Mostly Steady Ahead of CPI

Treasuries outperformed MBS just slightly today, but both were close enough to unchanged to argue against any excess analytical effort. In general, bonds took their last major cue from the jobs report earlier in the month and have been mostly sideways since then. That brings us to Tuesday morning's CPI which is the only true top tier data of the week and the only report that can occasionally hold a candle to the jobs report in terms of volatility potential.  As with last month, the headline numbers don't necessarily tell the story. Traders will quickly be looking to sort out tariff-impacted categories from the rest of the data.