There are two ways to look at today's weakness in the bond market. On one hand, yields did a great job of holding underneath the 4.34% technical ceiling in 10yr yields despite multiple bounces. On the other hand, 10yr yields moved quickly up to the 4.34% ceiling and attacked it multiple times. The first scenario is an optimistic defense. The second scenario could be viewed as "staging" for a breakout. Traders likely haven't determined which scenario they'll support and are instead waiting to see the lay of the land after next week's Fed events.
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- Import Prices
- 0.5 vs 0.3 f'cast, 0.1 prev
- NY Fed Manufacturing
- 1.9 vs -10 f'cast, -19 prev
- Industrial Production
- 0.4 vs 0.1 f'cast, 0.7 prev
- Consumer Sentiment
- 67.7 vs 69.1 f'cast
- 1yr inflation expectations down 0.4
- 5yr inflation expectations down 0.3
- Import Prices
Weaker overnight with Europe, but traders "buying the dip" in bond prices now. 10yr up 2.2bps at 4.308. MBS down roughly an eighth.
Slightly weaker into the PM hours. MBS down about a quarter point. 10yr up 4.4bps at 4.33%
10yr up 4.2bps at 4.328. MBS down .25 to .375.
MBS Market Alerts
