Bonds Vote To Hold The Range Despite Stronger Data
10yr yields tested multi-month highs overnight (1.573), but improved gradually leading up to the domestic session. Bond bulls held their breath at 8:15am ET when ADP employment data came out stronger than expected, but traders took it in stride. After a few moments of weakness, yields continued falling into the 10am hour. The rest of the day was flat despite some traction on a temporary debt ceiling extension deal.
Fed MBS Buying 10am, 1130am, 1pm
ADP Employment 568k vs 428k f'cast, 340k prev
Weaker again overnight with 10s hitting multi-month highs of 1.573%. They've since recovered to 1.534 (up less than a bp). MBS are down only 2 ticks (0.06). ADP data taken in stride.
Addition recovery heading into the 9am hour with 10yr yields now DOWN on the day, albeit only slightly, at 1.521%. MBS are within 1 tick of 'unchanged.'
Very flat since this morning's friendly correction. Levels are right in line with the last update and no market movers in sight.
Bonds weakened briefly and modestly after news on a temporary debt ceiling extension, but are back in line with the previous levels (10yr yields at 1.522 and MBS up 1 tick).