Ending Near Unchanged Levels After Early Head Fake
Trading volumes confirm that bonds are 100% back in action, but after this morning's selling pressure proved to be a head fake, that volume hasn't translated to any meaningful momentum. This isn't too hard to accept considering the absence of big-ticket econ data. Things change on Wednesday with the release of ADP, JOLTS, and ISM. This is our first chance to see some actual data-driven volatility in several weeks.
Econ Data / Events
S&P Global Composite PMI (Dec)
52.7 vs 53.0 f'cast, 54.2 prev
S&P Global Services PMI (Dec)
52.5 vs 52.9 f'cast, 54.1 prev
Market Movement Recap
09:43 AM Modestly weaker overnight and sideways so far. MBS down 2 ticks and 10yr up 1.2bps at 4.176
10:37 AM Weakest levels of the day on defense spending comments. MBS down an eighth and 10yr up 2.4bps at 4.187
01:27 PM Bouncing back now. MBS unchanged and 10yr up 1.6bps at 4.179
03:25 PM Holding sideways near unchanged levels in MBS, currently down 1 tick (.03). 10yr yields up 1.1bps at 4.174
Not Quite The Rally You’d Expect, But a Rally Nonetheless
Not Quite The Rally You’d Expect, But a Rally Nonetheless
Today’s vitals might be a bit confusing at first glance. Payrolls came in at -23k versus forecasts of 80k. At most moments in history, that would be wor…