Underwhelming (But Friendly) Conclusion

The present week didn’t manage to offer nearly as much excitement as the previous few examples, but that’s not necessarily a bad thing considering yields/rates are near the lower boundary of their recent ranges.  Today looked like it may have been a higher rate day at the start of the session, but bonds arrested the selling trend and reversed course after dovish comments from Fed’s Waller. Europe’s close was also beneficial for US bonds, helping us get all the way back into modestly stronger territory before trading levels flat-lined into the U.S. close. 

Econ Data / Events

Philly Fed Index 

-4.0 vs -1 f’cast, -4.0 prev

Leading Indicator Index

-0.1 vs -0.1 f’cast, -1.0 prev

Market Movement Recap

10:09 AM Moderately weaker overnight, following European bonds, but bouncing back a bit after AM data. MBS down 1 tick (.03) and 10yr up 2.7bps at 4.419

12:20 PM Decent rally at 11am. 10yr now down 1bp at 4.382.  MBS up 3 ticks (.09).

03:09 PM flat all afternoon.  10yr down 1.8bps at 4.374 and MBS up 5 ticks (.16).