Small But Surprising Reaction to Data. Cruise Control Remain Intact

This morning's stronger-than-forecast GDP data had a surprising amount of impact on the bond market (that is, it had a very small impact as opposed to none at all).  The few bps of weakness looked to be more a trade of convenience than anything with yields perfectly tapping the trend line that's been serving as a ceiling for the past 3 trading sessions (chart of that in the AM commentary). Bonds recovered those losses and a bit more with help from weaker Leading Indicators at 10am ET.  We're still advocating relative detachment until January.  Volumes and liquidity were both very low.

Econ Data / Events
    • Jobless Claims
      • 216k vs 222k f'cast, 214k prev
    • Q3 GDP, Final Revision
      • 3.2 vs 2.9 f'cast/prev
    • GDP Consumer Spending
      • 2.3 vs 1.7 prev
    • Leading Economic Indicators
      • -1.0 vs -0.4 f'cast, -0.9 prev
Market Movement Recap
09:01 AM

Slightly weaker after AM data.  10yr up 0.7bps on the day at 3.679.  MBS down just over an eighth of a point depending on liquidity.

11:38 AM

Illogical and mostly inconsequential volatility, fueled primarily by illiquidity in MBS.  Now down only 3 tick (.09) after just being down a quarter point moments ago.  10yr yield just barely under unchanged levels at 3.669%.

02:49 PM

Unchanged from the previous update and generally sideways all day.

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