Financial markets continue feeling out prospects for global banking contagion. Yesterday was a more fearful day, so bonds rallied. Today was a more hopeful day, so bonds sold off. That simple.
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- Housing Starts
- 1.45m vs 1.31m f’cast, 1.32m prev
- Building Permits
- 1.524m vs 1.340m f’cast, 1.339m prev
- Philly Fed Index
- -23.2 vs -15.6 f’cast, -24.3 prev
- Jobless Claims
- 192k vs 205k f’cast, 212k prev
- Housing Starts
08:52 AM
Mostly flat overnight with modest gains early and no reaction to data. MBS up a few ticks. 10yr down 3.7bps at 3.425
10:25 AM
Some initial weakness after ECB press conference, but bouncing back now. MBS up an eighth and 10yr down 7.5bps at 3.388%.
10:57 AM
Losing ground quickly on First Republic bailout headlines. MBS down more than a quarter point from highs. 10yr quickly up 8-9bps at 3.458.
03:34 PM
Selling spree leveled off shortly into the PM hours. Holding fairly flat with MBS down 3/8ths on the day and 10yr yields up 10.5bps at 3.57.
