Almost Like Clockwork
Almost like clockwork, after several days spent mostly rallying on a headline-driven drop in oil prices, bonds reversed course as the tone of the headlines changed and oil prices bounced. That said, oil didn't bounce too much today. The rest of the drama for bonds came courtesy of a big corporate bond announcement before the open. Yields remain safely under supportive ceilings for now, but weekend-adjacent days have been prime candidates for war headline volatility. And as always, the jobs report can never be ruled out as a source of inspiration for better or worse.
Econ Data / Events
Jobless claims
199k vs 202k f'cast, 198k prev
Market Movement Recap
09:18 AM Moderately weaker overnight on a combo of oil and corporate bond issuance. MBS down 5 ticks (.16) and 10yr up 2.4bps at 4.637
11:46 AM MBS Down 7 ticks (.22) and 10yr up 4.5bps at 4.658
12:23 PM MBS now down 10 ticks (.31) and 10yr up 5.9bps at 4.673
02:20 PM Sideways at weakest levels. MBS down 9 ticks (.28) and 10yr up 5.9bps at 4.672
Incidental Weakness. Bigger Considerations on The Horizon
Incidental Weakness. Bigger Considerations on The Horizon
Without any data or compelling market movers, bonds came into the day light on inspiration. Low volume/liquidity left the door open for any determined t…