Posted To: MBS Commentary
Uneventful Afternoon After Strong Data Sends Yields Higher Today’s key development was the duo of much stronger economic reports at 8:30am (Philly Fed and Retail Sales). Indeed, this accounted for the only interesting moments of the day. 5 minutes later, both MBS and Treasuries weakened to levels that persisted through the 3pm CME close. Bottom line: quick adjustment due to the data and then a sideways grind that reinforced the broader sideways-to-slightly-weaker range. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Retail Sales 0.7 vs -0.8 f’cast, -1.1 prev Jobless Claims 332k vs 330k f’cast Philly Fed Index 30.7 vs 18.8 f’cast Market Movement Recap 08:35 AM flat in Asia, then inconsequentially higher in yield during European hours, but losing ground quickly after significantly…(read more)
