Domestic Bonds

Tuesday was tame, but Wednesday probably won’t be

Tuesday was tame, but Wednesday probably won’t be

1 hour, 10 minutes ago

Tuesday’s trading session was boring, with rates hitting domestic hours at slightly higher levels and then holding near perfectly flat for the duration. Commentary this morning raised the possibility that Wednesday’s CPI data could end up looking disappointing after a few days. But while there are good reasons to doubt the CPI’s ability to dictate a more sustainable trend for bonds in the coming weeks, there’s no denying that it has huge potential to cause short-term volatility. term.

    • Labor costs in the second quarter
      • 10.8 vs 9.5 f’cast, 12.7 prev
    • Q2 productivity
      • -4.6 vs -4.7 f’cast, -7.4 prev

twenty five past eight

Stocks and bonds weaken steadily and slightly overnight. Most of the gains from yesterday’s national session have been erased. MBS down 3/8 and 10-year yields up 5.5 basis points to 2.805.

11:16 a.m.

On the side at slightly lower levels (no major changes from the previous update and no obvious motivations for better or worse). Illiquidity is a bigger factor today than yesterday for MBS, likely due to the 30-year UMBS rollover.

2:32 p.m.

Always aside at similar levels. No major impact of the 3-year Treasury auction. 10-year yields rose 4.8 basis points to 2.797. MBS down 11 ticks (.34).

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