Morning Volatility, Afternoon Drift

Bonds began the day in modestly weaker territory before undergoing a bit of volatility after the morning economic data.  The two reports in question were Jobless Claims, which voted in favor of lower yields, and the Philly Fed Index, which made the opposite case. Bonds wend both ways before the bulls ultimately took control and got yields back to unchanged levels just before 11am.  After that, it was a slow grind to the weakest levels of the day, but all of the above played out in a range that was just as narrow as the last few days.

Econ Data / Events

Jobless Claims

243k vs 230k f’cast, 223k f’cast

Continued Claims

1867k vs 1860k f’cast, 1847k prev

Philly Fed Index

13.9 vs 2.9 f’cast, 1.3 prev

Philly Fed Prices Paid

19.8 vs 22.5 prev

Market Movement Recap

08:53 AM Initial gains after Jobless Claims data, but pulling back a bit now.  10yr up over 2bps at 4.18+.  MBS down 3 ticks (0.09)

11:05 AM Back into positive territory in MBS, up 1 tick (.03).  10yr still up 1.2bps at 4.17, but well off the highs.

02:43 PM slightly weaker over the past few hours.  MBS down 2 ticks (.06) and 10yr up 2.3bps at 4.18

04:39 PM heading out at the weakest levels.  MBS down 6 ticks (.19) and 10yr up 4.4bps at 4.201