Solid Data-Driven Gains

Solid Data-Driven Gains Thursday was a fairly straightforward session for bonds. Yields fell modestly overnight in response to slightly lower oil prices and then more forcefully after the cooler-than-expected PPI data. Mid-day fuel price volatility caused a slight pull-back, but not enough to undo a reasonably robust rally by the close. If there's a "yeah but," it's that yields remain broadly sideways near long-term highs and were unable to challenge last week's lows. Econ Data / Events Core PPI m/m (Jul) 0.2% vs 0.3% f'cast, 0.2% prev Core PPI y/y (Jul) 4.2% vs 4.2% f'cast, 4.7% prev Jobless Claims (Aug)/08 209K vs 202K f'cast, 199K prev PPI m/m (Jul) -- vs 0.2% f'cast, -0.3% prev PPI y/y (Jul) 4.7% vs 4.9% f'cast, 5.5% prev Market Movement Recap 08:36 AM Moderately stronger overnight and no whammies after PPI.  MBS up an eighth and 10yr down 3bps at 4.666 12:55 PM Off best levels, but still up 10 ticks (.31) in MBS, and 10yr down 5.3bps at 4.644 03:55 PM flat this afternoon. MBS up 10 ticks (.31) and 10yr down 5.3bps at 4.643