Best Closing Levels in Nearly a Month

Best Closing Levels in Nearly a Month Bonds improved only moderately on Tuesday in a move that's just as easily chalked up to random holiday-week volatility as any of the day's data/events.  If we're determined to give credit to particulars, we can cite things like the 13.5k decline in weekly ADP payrolls, or the market's favorable reaction to rumors that Kevin Hassett is the front-runner to be the next Fed Chair (Hasset is assumed to be extremely dovish). Most notably, bonds took no damage from another day of upward momentum in stock prices. Yields closed out with 10s right at 4.0%--the best end of day marks since the day before the October 29th Fed announcement (6th lowest close in more than a year). Econ Data / Events ADP Employment Change Weekly -13.5K vs -- f'cast, -2.5K prev Core Producer Prices MM (Sep) 0.1% vs 0.2% f'cast, -0.1% prev PPI YoY (Sep) 2.7% vs 2.7% f'cast, 2.6% prev Producer Prices (Sep) 0.3% vs 0.3% f'cast, -0.1% prev Retail Sales (Sep) 0.2% vs 0.4% f'cast, 0.6% prev Retail Sales Control Group MoM (Sep) -0.1% vs 0.3% f'cast, 0.7% prev FHFA m/m home price change 0.0  Consumer Confidence  88.7 vs 93.4 f'cast, 94.6 prev Pending Home Sales 76.3 vs 74.8 prev Market Movement Recap 08:35 AM Lots of data but no reaction.  MBS up 2 ticks (.06) and 10yr down 0.7bps at 4.02 10:04 AM holding best levels after more data. MBS up 3 ticks (.09) and 10yr down 2.3bps at 4.005 12:22 PM Rates rallying on Hassett Fed Chair rumors. MBS up 6 ticks (.19) and 10yr down 3.5bps at 3.993 04:24 PM Heading out with MBS still up 6 ticks (.19) and 10yr down 2.6bps at 4.001