Fairly Inconsequential Friday Ahead of a Very Consequential Week Ahead
Despite feeling like a bumpy ride at times, the bond market actually didn’t do anything too interesting today–at least in the context of the bigger picture. During times of less volatility, it would indeed be interesting to note that MBS gave up roughly half a point between 9am and 4pm, but in today’s case, it was just an extension of yesterday’s trend and very safely inside this week’s trading range. For more consequential goings-on, our attention was already turned toward next week’s CPI data as a key point of consideration for the next Fed meeting (and thus, the potential market panic that could take hold if the data is particularly far from forecasts).
Econ Data / Events
No significant econ data
Market Movement Recap
Slightly stronger in Asia. Better gains in Europe. Holding gains in early US trading with 10yr down 6.3bps at 3.26 and MBS up almost 3/8ths.
Lots of back and forth volatility in the AM now resolving with MBS and Treasuries near their weakest levels, but holding ground. MBS up 2 ticks on the day (+0.06) and 10yr down 2.3bps at 3.30%.
Additional weakness into the 4pm hour and sideways since then. 10yr just a hair over unchanged on the day and MBS perfectly unchanged.