Fairly Inconsequential Friday Ahead of a Very Consequential Week Ahead
Despite feeling like a bumpy ride at times, the bond market actually didn't do anything too interesting today--at least in the context of the bigger picture. During times of less volatility, it would indeed be interesting to note that MBS gave up roughly half a point between 9am and 4pm, but in today's case, it was just an extension of yesterday's trend and very safely inside this week's trading range. For more consequential goings-on, our attention was already turned toward next week's CPI data as a key point of consideration for the next Fed meeting (and thus, the potential market panic that could take hold if the data is particularly far from forecasts).
- No significant econ data
Slightly stronger in Asia. Better gains in Europe. Holding gains in early US trading with 10yr down 6.3bps at 3.26 and MBS up almost 3/8ths.
Lots of back and forth volatility in the AM now resolving with MBS and Treasuries near their weakest levels, but holding ground. MBS up 2 ticks on the day (+0.06) and 10yr down 2.3bps at 3.30%.
Additional weakness into the 4pm hour and sideways since then. 10yr just a hair over unchanged on the day and MBS perfectly unchanged.