Yields Quickly Forced to Defend Monday’s Ceiling

Bonds started off on the defensive today with a weaker hand-off from Europe and ongoing supply jitters surrounding Treasury auctions and corporate issuance.  Domestic traders made a dent early as corporate deals were priced, but bonds avoided turning green ahead of the 10yr auction.  Post-auction say a return to the weakest levels of the day (nearly as high as Monday’s ceiling).  Now we wait for Thursday’s ECB reaction and Friday’s CPI data.

Econ Data / Events

Fed MBS Buying  10am, 11:30am, 1pm

Market Movement Recap

08:50 AM Moderately weaker overnight, with additional selling after 8:20am CME open (with input from new corporate bond issuance).  10yr up 3.7bps at 3.016. MBS down 6 ticks (.19).

11:28 AM Well off the worst levels of the day now with 10s up only 1.7bps at 2.996 and MBS down less than an eighth of a point.

01:03 PM First move is weaker after the 10yr auction (moderately weaker stats).  10yr up 5 bps on the day at 3.025 and MBS down just over a quarter point.
Source: Mortgage News Daily