MBS RECAP: Bonds Fight To Remain in Ultra-Narrow Range

Posted To: MBS Commentary

Bonds Fight To Remain in Ultra-Narrow Range Yesterday presented a short-term, small scale threat to the bond market's happy little range. Today's strength has done a good job of minimizing that threat and reinforcing the range. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Jobless Claims 837k vs 850k f'cast , 873k prev Core PCE Inflation 1.6 vs 1.4 f'cast , 1.4 prev ISM Manufacturing 55.4 vs 56.3 f'cast, 56.0 prev Market Movement Recap 08:46 AM Bonds were gradually weaker overnight and stocks were gradually stronger. The 8:20am CME open brought out more sellers, and while stronger econ data at 8:30am may not be hurting as much as it may seem, it's definitely not helping. 10yr is up almost 3bps at .714 and 2.0 UMBS are down an eighth…(read more)

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