This is How They Get Ya

Bonds ended up rallying a bit to close out the week, sorta.  10yr yields were 3bps lower day-over-day, making it "all the way down" to the glorious level of 4.25%.  And that's how they get ya!  4.25%, of course, is not a glorious level, nor is it even worth any new optimism.  On a summertime Friday afternoon, a small token correction to the highest weekly closing yield since 2007 is just the latest piece of evidence that rates are still high.  In short, nothing happened today and next week is light on data with the focus already clearly on Friday's Jackson Hole speech from Fed Chair Powell.

Market Movement Recap
09:37 AM

Stronger overnight, but weaker after 8:20am CME open.  MBS unchanged.  10yr down 1.4bps at 4.27.

01:44 PM

Illiquidity making MBS losses look bigger at times. Down 6 ticks (.19) a moment ago.  Now up 2 ticks (.06). 

03:16 PM

Weakest PM levels.  MBNS down 2 ticks (0.06).  10yr Still down 2.3bps on the day but up from 4.22 lows to 4.26.

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