So Long August. Don’t Let The Door Hit Ya!
July! We miss you!
August, please leave!
Hopefully September finds a way to be a warm bowl of porridge between July’s rate-friendly exuberance and August’s full-fledged correction. We see no other reason for today’s late weakness than month-end tradeflows
Econ Data / Events
ADP Employment
132k vs 288k f’cast, 128k prev
Market Movement Recap
09:54 AM Slightly weaker overnight after EU econ data and EU bond selling, but bouncing back a bit into domestic hours and fairly steady now. 10yr up less than 1bp at 3.121%. MBS down only 1 tick at 99-21 (99.67)
12:22 PM Choppy in a narrow, sideways range. Trading levels right in line with the previous update after being slightly stronger from 10-11am ET.
02:05 PM Some weakness heading into the 2pm hour. No particular reason. Isolated mainly to MBS, now down an eighth on the day. 10yr still up just over 1bp at 3.125.
03:11 PM Some bigger selling after the 3pm CME close (month-end trading). 10yr up 3.4bps at 3.146. MBS down 10 ticks (.31) at 99-13 (99.41).
04:14 PM Additional weakness as month-end trading positions continue squaring up. MBS down a few more ticks and 10yr now up 7bps at 3.183.
