Nice Gains, But No Particular Reason

This is how they get ya!  It’s a classic sales tactic.  The bond market softened us up with nearly 2 straight weeks of losses so that we’d be inclined to say “nice gains” about a dinky little quarter point rally in MBS.  A quarter point?!  That’s nothing in 2022, yet here we are.  Nice!

Econ Data / Events

Jobless Claims

225k vs 225k f’cast, 216k prev

Market Movement Recap

08:42 AM Modestly stronger overnight with some additional buying after the claims data (not necessarily because of it).  10yr down 3bps at 3.856 and MBS up 5 ticks (.16).

01:03 PM Not much reaction to 7yr auction.  Decent gains before that.  MBS up just over a quarter point.  10yr yield down 5.3bps to 3.833.

03:15 PM Best levels occurred shortly after the 7yr auction.  10yr Treasuries have backtracked slightly, now down only 4.5bps at 3.841 and MBS are flatter, still up just over a quarter point.