Slow, Steady Gains Continue

Perhaps the absence of big-ticket econ data has left bond traders to ponder a reality that they see as economically challenging.  Perhaps non-gov reports like today’s Philly Fed services index are contributing to those assumptions.  Perhaps other indicators like oil, forex, etc. are exerting some influence. Or perhaps this is the tail end of a short-term repricing driven by last week’s banking concerns or Fed balance sheet expectations. Either way, volume was light and gains were modest as yields push their lowest levels in more than a year.

Econ Data / Events

Philly Fed Non-Manufacturing Biz Activity

-22.2 vs -12.3 prev
employment -4.5 vs +9.4 prev
new orders -17.4 vs +0.5 prev
prices 35.8 vs 38.8 prev

Market Movement Recap

10:43 AM Moderate gains so far this morning.  MBS up 3 ticks (.09) and 10yr down 2.1bps at 3.958

01:49 PM Treasuries off best levels, but still stronger and broadly sideways.  MBS up 3 ticks (.09) and 10yr down 1.7bps at 3.962