Posted To: MBS Commentary
Stronger Data Proves No Match For The Sideways Grind Bonds have done a good job of clearing hurdles of various sizes over the past 2 weeks. Last week’s inflation data presented the biggest recent risk, but this week’s Fed Minutes also raised some concerns. This morning’s example came courtesy of a much stronger Markit Services PMI reading, but it was no match for the well-entrenched range trade in longer term yields. 10yr Treasuries briefly hit their highs of the day, but then settled in to the same sideways-to-slightly-stronger pattern seen yesterday afternoon. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Markit PMIs: Services 70.1 vs 64.5 f’cast Manufacturing 61.5 vs 60.2 f’cast Existing Sales 5.85m vs 6.09m f’cast Market Movement Recap 08:36 AM sideways to…(read more)
