Decent Gains Amid De-Escalation Headlines

Decent Gains Amid De-Escalation Headlines Don't worry about what actually happened, who actually spoke to whom, and the details of the conversations that may or may not have happened. Today's simplest fact is that the President said things that can be filed under the heading of "de-escalation" of the Iran war and markets were obviously and immediately willing to respond. It's the response that's encouraging-regardless of the details. By no means does this constitute the big shift we're waiting for, but it at least suggests such a shift will be possible when the war is truly over.  Econ Data / Events Construction Spending -0.2 vs 0.1 f'cast, 0.8 prev Market Movement Recap 09:09 AM Weaker overnight then sharply stronger just after 7am on "war might end" headlines. MBS up 6 ticks (.19) and 10yr down 1.8bps at 4.366 after being as high as 4.442 just before 7am. 10:36 AM Additional gains on additional Iran negotiation headlines. MBS up nearly 3/8ths and 10yr down 3.8bps at 4.345 12:49 PM Well off highs. MBS up 5 ticks (.16) on the day and 10yr down only 1.8bps at 4.365 03:09 PM Nice recovery. MBS up 3/8ths and 10yr down 5.5bps at 4.328