Reasonably Resilient After Data-Driven Selling

This morning’s Jobless Claims report was the week’s most relevant economic report apart from the S&P PMI data that came out just over an hour later.  As it happened, Claims garnered the only obvious response, pushing yields slightly higher in addition to the modest weakness seen in the overnight session. Bonds were able to push back in a friendlier direction at the 9:30am NYSE open–something they’ve done on 3 out of 4 days this week.  It wasn’t quite enough to turn a red day green, but with MBS ending down only 2 ticks (.06), some might say it was close enough for government work.

Econ Data / Events

Jobless Claims

217k vs 227k f’cast, 221k prev

Continued Claims

1955k vs 1960k f’cast, 1951k prev

S&P Manufacturing PMI

49.5 vs 52.6 f’cast, 52.0 prev

S&P Services PMI

55.2 vs 53.0 f’cast, 52.9 prev

New Home Sales

627k vs 650k f’cast, 623k prev

Market Movement Recap

09:16 AM Some selling before and after jobless claims.  MBS down 7 ticks (.23) and 10yr up 5.3bps at 4.438

10:09 AM decent recovery at 9:30am NYSE open and no major reaction to S&P PMI data.  MBS down an eighth and 10yr up 2.7bps at 4.411

01:01 PM MBS down only 2 ticks (.06) and 10yr up 1.9bps at 4.403

03:39 PM Fading a bit now.  MBS down 5 ticks (.16) and 10yr up 3.3bps at 4.417