It was a generally resilient day for the bond market after a bit of a scare in the morning. European inflation data caused a sell-off in EU bonds that spilled over to Treasuries overnight. Selling continued in the first few hours, but bonds began to recover after a slightly weaker Chicago PMI report. A calm, sideways mid-day gave way to stronger buying as month-end trades crowded in before the 3pm CME closing bell. Month-end buying aside, bonds were already showing a good amount of resilience by holding their ground in spite of the European influence.
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- Case Shiller Home Prices
- FHFA Home Prices
- Chi PMI
- Consumer Confidence
- 102.9 vs 108.5 f’cast, 106.0 prev
08:39 AM
Moderately weaker overnight with Europe leading the way. Slight recovery early. 10yr up 2bps at 3.943. MBS down 3 ticks (.09).
12:31 PM
Nice bounce back after 10am. 10yr up only 1.2bps at 3.934. MBS down only 1 tick (0.03).
03:23 PM
Progressively stronger into the 3pm CME close with month-end buyer helping yields turn green. 10yr near unchanged on the day. MBS down only 1 tick (0.03).
