Uneventful Trading Day, But That’s a Win

There’s not much to say about today’s trading session.  MBS and Treasuries both ended exactly in line with yesterday’s latest levels, and there wasn’t much fanfare in between.  Well, maybe “fanfare” depends on one’s perspective. 10yr yields managed to fall 6bps by 9:30am and pushed 6bps higher over the next 3.5 hours before flat-lining in the afternoon.  A 6bp swing is somewhat interesting, but even if we only had the flat-line, today would still be a victory due to yesterday’s gains and the fact that bonds haven’t been bothered by the moderate recovery in stocks.  Granted, today’s stock market bounce occurred at the same time as the bond yield bounce, but the correlation didn’t even make it through the day before breaking down again.

Econ Data / Events

Jobless Claims

223k vs 224k f’cast, 221k prev

Philly Fed Index

12.5 vs 8.5 f’cast, 18.1 prev

Market Movement Recap

08:30 AM No major reaction to ho hum data after overnight gains.  MBS up 5 ticks (.16) and 10yr down 3.9bps at 4.195

11:37 AM MBS up 2 ticks (.06) and 10yr down half a bp at 4.228.

03:10 PM sideways at weaker levels.  MBS up 1 tick (.03) and 10yr up 0.2bps at 4.236