Posted To: MBS Commentary
Wednesday’s CPI data was akin to some passionate political orator making a case for the country to go to war against low rates. Yesterday’s 30yr bond auction stepped in with a “not so fast” counterpoint, and now today’s Retail Sales data (0.0 vs 1.0 forecast) gives us hope that cooler heads will prevail. Bottom line, as of this morning mid-week drama looks to have given way to the same old trading range that’s been intact since April 7th. Specifically, a ceiling near 1.68% in 10yr yields is what we’re hoping to hold. The morning’s other data is less significant from a potential market movement potential standpoint, but isn’t completely irrelevant. In fact, we know the Fed is keeping an eye on consumer inflation expectations and the 10am Consumer Sentiment…(read more)
