Refreshingly Resilient Despite Bumpy 30yr Auction
There have been a few flashes of resilience in the bond market this week. In the broadest sense, it's reassuring to see that bonds have retraced only half of their omicron driven move whereas stocks made it almost all the way back. That this occurred on a Treasury auction week and in spite of the market gearing up for a tapering acceleration makes it all the more impressive. Today's addition to this theme was the fairly tame reaction to a very weak 30yr bond auction. The horizon is not without its risks though...
Fed MBS Buying 10am, 11:30am, 1pm
jobless claims 184 vs 215 f'cast, 227 prev
decent gains overnight, and holding ground after econ data. 10yr down 4.3bps at 1.485. MBS up just over an eighth of a point.
Weakness since 8:30am. MBS briefly back to unchanged, but not losing any more ground immediately. 10yr down 3.6bps now at 1.492.
Losses stabilized at 930am and bonds have been consolidating since then. MBS up 3 ticks (.09) and 10yr down 4bps at 1.487
Sharp weakness after 30yr bond auction, but recovering nicely now.