Despite Onslaught of Fed Speakers, Bonds Hold Solid Gains

Oil prices, Asian equities indices, US equities futures, EU bonds, EU equities, and US Treasury yields…  All of the above moved steadily lower in the overnight session amid a broad risk-off trade.  A technical break of June’s uptrend in rates added to the momentum.  With the early gains in place, markets faced an onslaught of Fed speakers, let by Fed Chair Powell during scheduled congressional testimony.

Econ Data / Events

Market Movement Recap

09:16 AM

Strong gains overnight with some early follow-through as domestic traders start their day.  10yr down 11.7bps at 3.16 and MBS up more than 3/8ths of a point. 

11:32 AM

Most bond gains were intact before Powell, but Powell hasn’t been hurting (or saying anything new, really).  10yr down 12.3bps at 3.156 and MBS up half a point at 99-26 (99.81).

01:47 PM

Sideways at stronger levels throughout Powell testimony and additional Fed speakers.  10yr yield down 13.5bps at 3.143%.  MBS up half a point at 99-25 (99.78).
Source: Mortgage News Daily