At Least We Won’t Be Waiting For CPI Anymore
Wed, Jan 10 2024, 3:41 PM
The present week has been a bit boring, for lack of a gentler term. In fact, it’s been downright forgettable, but that’s often the case when rates have been on a big trip and are weighing their options for the next move ahead of a key piece of data. There was some small chance that this week’s Treasury auctions would act as a bit of an opening act for Thursday’s big show (CPI), but today’s 10yr auction didn’t produce a measurable reaction. Intraday momentum was weaker, but only after opening at stronger levels. Combine that with the slow pace of selling and Wednesday is yet another day that fits the “sideways and narrower ahead of CPI” narrative.
09:33 AM
Modest gains overnight as European yields hold a ceiling. 10yr down 2.6bps. MBS up 5 ticks (.16).
10:47 AM
Well off highs with slow, steady selling since 9:30am. MBS still up 3 ticks (0.09) but down an eighth from highs. 10yr yield down 0.4bps at 4.011.
03:20 PM
Weaker through mid-day and leveling off now. MBS down 2 ticks (0.06). 10yr up 1.7bps at 4.032.
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