Wednesday's emergency bond buying announcement from the BOE served to cap the death spiral that had been underway in bond yields, but not as an impetus for a sustained push in the other direction. In other words, it only really made a suggestion about the ceiling of the range in the near term, but not the floor. For that, markets turned to this morning's inflation data from Germany--another all-time high. Yields spiked off the 3.72% technical level, quickly hitting 3.83% before drifting sideways to slightly lower with some help from investors fleeing 2% losses in stocks.
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- Jobless Claims
- 193k vs 215k f'cast
- GDP (Q2 Final)
- -0.6 vs -0.6 f'cast/prev
- Jobless Claims
Fairly flat to start the overnight session, then much weaker after German inflation data. 10yr up 7.2 bps at 3.814. MBS down just over 5/8ths, but with a quarter point of illiquidity.
Stronger gains as domestic session continues. 10yr now up only 2.2bps at 3.759. MBS still down half a point.
Sideways to slightly stronger with MBS now down only 3/8ths and 10yr yields up only 1.4bps (they were briefly positive just after the noon hour) at 3.751.
MBS Market Alerts
