Data and Headlines Drive Modest Volatility Ahead of The Fed

There were two different bouts of modest volatility in the bond market today.  The first followed the 10am JOLTS data as the stronger headline/revisions caused some initial selling.  Buyers bounced back with help from softer internal components–both in JOLTS and via the labor differential in the Consumer Confidence data.  Afternoon volatility followed headlines regarding a rocket attack in Beirut which left bonds sideways near their best levels of the day.  The Fed announcement is the next major calendar event, but Wednesday AM data is still capable of causing some movement. 

Econ Data / Events

Job Openings

8.184m vs 8.0m f’cast, 8.23m prev

Job Quits (lower is better)

3.282 vs 3.459m prev

Consumer Confidence

100.3 vs 99.7 f’cast, 100.4 prev

Market Movement Recap

10:22 AM Unchanged overnight, stronger early, now back to unchanged after data.  MBS down 1 tick (0.03).  10yr down 0.5bps at 4.17

01:04 PM Quick surge in bonds on geopolitical headlines.  10yr down 3.4bps at 4.142.  MBS up an eighth.

03:29 PM Fairly flat after early afternoon gains.  10yr down 3.6bps at 4.141.  MBS up an eighth.