Small Scale Volatility But Very Sideways Overall
2 Hours, 39 Min ago
There were a few instances of volatility in the bond market today with several of the larger moves lining up with larger doses of volume. In a “data dependent” world, it’s odd to consider that none of the notable moves had anything to do with economic data. Instead, it was a surge in corporate bond issuance around 9am causing some selling and the 3pm close causing some buying. And EVEN THEN, those events added up to a pittance of activity and drama. Bonds managed to clock modest gains, but that only served to solidify the sideways trend that’s been in place since the Feb 13 CPI data.
- Q4 GDP (revision)
- GDP PCE Price Index
- Wholesale Inventories
- -09.1 vs 0.1 f’cast, 0.4 prev
08:58 AM
Modestly stronger overnight. No reaction to data. Giving up some gains now. 10yr still down almost 1bp at 4.295. MBS up 2 ticks (.06).
11:42 AM
Little changed from previous update after some initial volatility. 10yr down 1.2bps at 4.291. MBS up 3 ticks (.09).
03:27 PM
Stronger during the 3pm CME close (month-end). 10yr down 3.5bps at 4.268. MBS up a quarter point in 5.5 coupons and an eighth in 6.0 coupons.
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