Thu, Jul 11 2024, 10:47 AM
The Consumer Price Index (CPI) is the most important economic report for the bond market these days. The most important line item in that report is m...
Wed, Jul 10 2024, 4:04 PM
No New Inspiration Ahead of Thursday's CPI
We've officially run out of ways to characterize the boring, side...
Wed, Jul 10 2024, 11:07 AM
The most recent sideways slide began just before noon last Friday. Bonds had rallied in response to the jobs report with 10's closing at 4.29%. Sinc...
Tue, Jul 9 2024, 4:29 PM
MBS Outperform. Powell Punts. Waiting on CPI
Bonds showed slightly more notable signs of life this morning w...
Tue, Jul 9 2024, 9:54 AM
The new week is one day less new today, but no less sideways so far. Yields rose microscopically in the overnight session, but even that is a generou...
Mon, Jul 8 2024, 4:10 PM
Uneventful Monday Leaves Bonds Little Changed
It was a quintessential summertime Monday to start the new wee...
Mon, Jul 8 2024, 10:42 AM
Bonds are finding their range in a perfectly inoffensive way to begin the new week. That's a victory considering a bit of weakness is never a surpris...
Fri, Jul 5 2024, 4:33 PM
Orderly, Logical Rally as Bonds Reiterate Data Dependence
Today's recap isn't any different than the morning...
Fri, Jul 5 2024, 11:24 AM
Today's playbook was fairly straightforward with bonds being likely to move in the direction suggested by the jobs report. The only challenge would h...
Wed, Jul 3 2024, 2:18 PM
Data Over Politics, For Now
Several days ago, we were debating whether the presidential debate or the month-...
Wed, Jul 3 2024, 11:42 AM
The bond market will close at 2pm instead of 5pm today as a part of the Independence Day holiday (fully closed tomorrow). With only a few hours left,...
Tue, Jul 2 2024, 5:00 PM
Ultimately a Very Drama-Free Day; Back to Watching Data
Tuesday helped buck the recent trend of frustratingl...
Tue, Jul 2 2024, 11:37 AM
It's been an interesting and frustrating couple of days for the bond market with yields spiking for reasons that leave many bond watchers guessing. A...
Mon, Jul 1 2024, 5:28 PM
Changing The Narrative to Fit The Market Movement
Often, if not most of the time, one can observe the core i...
Mon, Jul 1 2024, 11:45 AM
Friday's trading session was marked by a surprisingly weak reaction to economic data that should have helped bonds. In fact, it did at first, but thi...
Fri, Jun 28 2024, 3:34 PM
What to Make of Week's Weakest Levels After Solid PCE Data
Things looked good for the bond market earlier th...
Fri, Jun 28 2024, 12:10 PM
This morning's most notable scheduled event and biggest potential market mover was the release of May's PCE price index, the Fed's favorite inflation ...
Thu, Jun 27 2024, 4:31 PM
Back in The Range Without Needing Too Much Convincing
Unlike yesterday, the overnight session sent bonds int...
Thu, Jun 27 2024, 10:10 AM
It's been an odd morning for the bond market, but not in an objectionable way. In not so many words, bonds are rallying somewhat nicely despite an ab...
Wed, Jun 26 2024, 3:53 PM
Sideways Trend Looking Shifty
Using Treasury yields as a road map, the past week and a half has been excruci...
Wed, Jun 26 2024, 10:31 AM
The absence of relevant domestic market movers has been a theme all week. While that has gone hand in hand with relatively uninspired bond market mov...
Tue, Jun 25 2024, 3:06 PM
Decent 2yr Auction, But No Major Inspiration For Bonds
We've increasingly revisited the concept of the "insi...
Mon, Jun 24 2024, 3:36 PM
No Major Data, No Major Movement
It was a snoozer of a day for bonds with yields and MBS prices holding well...
Mon, Jun 24 2024, 10:18 AM
With last Friday's range in 10yr yields of roughly 4.22 to 4.27, there was narrow window for today being an "inside day" (i.e. when the previous sessi...
Fri, Jun 21 2024, 4:41 PM
Ultimately an Uneventful Week Despite Micro-Volatility
This morning featured an overnight rally driven by we...
Fri, Jun 21 2024, 10:56 AM
S&P Global (formerly Markit) PMIs are the standard PMI around the world, but have long been second fiddle to ISM PMIs in the U.S. That's certainly st...
Thu, Jun 20 2024, 3:26 PM
Counterintuitive Weakness Early, But Inconsequential in Bigger Picture
The past two trading days each had th...
Thu, Jun 20 2024, 11:07 AM
On Tuesday, bonds had an initial, positive reaction to the Retail Sales data that clearly ended mere minutes after the release. Yields trended slight...
Tue, Jun 18 2024, 4:13 PM
Additional Mid-Day Gains Independent of Data and Events
Bonds traded the day in two distinct sections. Firs...
Tue, Jun 18 2024, 10:19 AM
It's nearly impossible to avoid hearing the phrase "data dependent" when following financial markets these days and this morning's movement is the lat...
Mon, Jun 17 2024, 4:40 PM
MBS Outperform as Treasuries Give Back Some of Last Week's Gains
After rallying from roughly 4.45 to 4.22% l...
Mon, Jun 17 2024, 11:17 AM
Last week, MBS underperformance was front and center. One of the justifications was the fact that MBS almost always underperform when Treasuries go o...
Fri, Jun 14 2024, 3:36 PM
Once More: What's Up With MBS Underperformance?
The notion of MBS underperforming Treasuries is front and ce...
Fri, Jun 14 2024, 1:07 PM
The bond market has a lot on its mind after this past week of economic data and events. Inflation quickly and increasingly looks like it may (finally...
Thu, Jun 13 2024, 3:46 PM
Helpful Data, MBS Underperformance, Is This Time Different?
The bond market reacted favorably to this mornin...
Thu, Jun 13 2024, 10:48 AM
In a nutshell, this morning's economic data rapidly reversed the weakness seen after yesterday's Fed announcement, thus restoring the lowest yields ac...
Wed, Jun 12 2024, 4:22 PM
Massive CPI Rally Cut in Half After Fed Announcement
As discussed in the AM commentary, bonds rallied sharpl...
Wed, Jun 12 2024, 2:01 PM
Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have remained strong, and the unemployment rate ha...
Wed, Jun 12 2024, 10:32 AM
There are so many line items in the CPI data that it would be hard to imagine a truly perfect report. In today's case, one could still take exception...
Tue, Jun 11 2024, 3:53 PM
Treasury Auction Helps Bonds Hold The Range
If yesterday was a placeholder ahead of bigger ticket events, an...
Tue, Jun 11 2024, 10:20 AM
Not every day is destined to be significant (or even interesting) for the bond market. Depending on the outcome of today's only relevant calendar eve...
Mon, Jun 10 2024, 3:24 PM
Straightforward Session as Traders Wait For More
Monday ended up being rather uneventful for the bond despit...
Mon, Jun 10 2024, 10:55 AM
The Consumer Price Index (CPI) has done more than any other report to shape trends in the bond market in the past year. At times (such as the middle ...
Fri, Jun 7 2024, 4:06 PM
What Jobs Report? Bring on CPI and the Fed
Bonds made it almost all week putting on a superhuman display of...
Fri, Jun 7 2024, 12:23 PM
Whether it was a magical combination of Treasury auction timing and new month trading or a legitimate shift in response to Monday's ISM Manufacturing ...
Thu, Jun 6 2024, 4:12 PM
Bonds Continue Taking Their Seats Ahead of The Big Show
Although bonds continued to improve yesterday, the p...
Thu, Jun 6 2024, 10:00 AM
We've been anticipating this week of data for the past 3 weeks and it has been delivering on the promise of increased motivation for the bond market. ...
Wed, Jun 5 2024, 4:08 PM
Counterintuitive Reaction to Data, But We're Not Upset
The bond market did not stick to its usual script tod...
Wed, Jun 5 2024, 10:52 AM
ISM produces two PMIs. Both of them have a strong track record of inspiring market movement with today's service sector version being the bigger deal...
Tue, Jun 4 2024, 4:16 PM
More Gains After JOLTS, But They Might Have Happened Anyway
The winning streak continues for the bond market...
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