Rangebound Weakness With Fed Speakers Keeping Bonds Wary

Bonds might have had a chance to hold steady today–and to be fair, they did hold steady in the bigger picture–but some combination of Fed speakers and position-squaring resulted in a morning sell-off.  The afternoon was a dud with no major movement in either direction.  Next week brings several Fed speakers that may help us figure out if the views expressed on Friday are widespread.

Econ Data / Events

Consumer sentiment

63.9 vs 60.0 f’cast, 59.2 prev

1y inflation

3.3 vs 5.2 prev

5y inflation 

3.0 vs 3.1 prev

Market Movement Recap

09:45 AM Flat overnight and now weaker in the first 90 minutes.  10yr up 5+ bps at 3.77+.  MBS down 3/8ths.

10:49 AM Rally/Sell-Off/Rally after Consumer Sentiment data and now back in line with pre-data levels (same as the last update).

02:04 PM Leveling off now at the same old levels in Treasuries (10yr at 3.77), but slightly better MBS (down a bit less than a quarter point)

03:34 PM Sideways at slightly weaker levels into the close.  No major change from the last update.