Thursday was a fairly straightforward session for bonds. Yields fell modestly overnight in response to slightly lower oil prices and then more forcefully after the cooler-than-expected PPI data. Mid-day fuel price volatility caused a slight pull-back, but not enough to undo a reasonably robust rally by the close. If there's a "yeah but," it's that yields remain broadly sideways near long-term highs and were unable to challenge last week's lows.
Econ Data / Events
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- Core PPI m/m (Jul)
- 0.2% vs 0.3% f'cast, 0.2% prev
- Core PPI y/y (Jul)
- 4.2% vs 4.2% f'cast, 4.7% prev
- Jobless Claims (Aug)/08
- 209K vs 202K f'cast, 199K prev
- PPI m/m (Jul)
- -- vs 0.2% f'cast, -0.3% prev
- PPI y/y (Jul)
- 4.7% vs 4.9% f'cast, 5.5% prev
- Core PPI m/m (Jul)
Market Movement Recap
08:36 AM
Moderately stronger overnight and no whammies after PPI. MBS up an eighth and 10yr down 3bps at 4.666
12:55 PM
Off best levels, but still up 10 ticks (.31) in MBS, and 10yr down 5.3bps at 4.644
03:55 PM
flat this afternoon. MBS up 10 ticks (.31) and 10yr down 5.3bps at 4.643
MBS Market Alerts
