Some Resilience After AM Weakness

Some Resilience After AM Weakness 10yr yields are set to end the week at the highest levels since last July, but those were even higher highs earlier this morning. From roughly 9am-1130am ET, bonds recovered all of the day's losses in a move that was led by adjustments to Fed rate hike expectations.  Yes, we can/should call it that now because there are no longer any rate cut expectations based on futures trading. Instead, there's indecision about holding steady vs a small chance of rate hikes. War headlines remain the dominant focus and weekends continue to offer a higher concentration of risk for financial markets. Econ Data / Events Consumer Sentiment (Mar) 53.3 vs 54 f'cast, 56.6 prev Sentiment: 1y Inflation (Mar) 3.8% vs 3.4% f'cast, 3.4% prev Sentiment: 5y Inflation (Mar) 3.2% vs 3.2% f'cast, 3.3% prev Market Movement Recap 10:13 AM Additional weakness overnight. MBS down 6 ticks (.19) and 10yr up 3.2bps at 4.452 11:39 AM Bonds turning green.  MBS up 2 ticks (.06) and 10yr down almost 1bp at 4.412 03:48 PM Drifting back into weaker territory, very gradually. MBS down 1 tick (.03) and 10yr up 2bps at 4.44