Without Major Data, Bonds Remain Quiet
Wed, Aug 28 2024, 4:09 PM
While it makes riveting analysis a challenge, it’s not necessarily a bad thing for the bond market to be incredibly boring sideways right now. After all, we’ve had a stable run of rates near their longer-term lows for several weeks. Volatility could creep back in with the upcoming economic reports, but today, it was nowhere to be found. Bonds started slightly stronger and drifted slightly weaker throughout the session with MBS not even an eighth of a point away from yesterday’s latest levels for the entirety. Data relevance increases sharply on Thursday with Jobless Claims and quarterly PCE (via GDP).
- Case Shiller Home Prices
- up 6.5% y/y vs 6.0% f’cast
- up 0.6% in June
- FHFA Home Prices
- down 0.1% in June vs +0.2% f’cast
- up 5.1% y/y vs 5.3% f’cast
- Consumer Confidence
- 103.3 vs 100.7 f’cast, 101.9 prev
- Case Shiller Home Prices
10:19 AM
Mostly flat overnight with quick 2-way volatility in the first 2 hours. 10yr unchanged at 3.826. MBS unchanged.
01:03 PM
No reaction to uneventful 5yr auction. MBS down 1 tick (.03) and 10yr up 1bp at 3.836.
01:41 PM
Weakest levels. MBS down 2 ticks (.06) and 10yr up 1.2 bps at 3.84
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