Solid End to a Solid Week

With essentially nothing meaningful on the economic or event calendar, the bond market did a good job sticking to a logical script of “more sideways and less volatile after CPI.”  It remains to be seen if that script will remain in force all the way until the first full week of December, but there’s nothing in terms of scheduled events that promises to derail it.  The only exception might be the weird trading dynamics occasionally seen on Thanksgiving week, but those must be taken with a grain of salt (or an ounce of gravy?) until being confirmed or rejected by more active markets in the following weeks.  All we know right now is that this was a solid week that ended on a solid note.  

Econ Data / Events

Housing Starts

1.372m vs 1.35m f’cast, 1.358m prev

Building Permits

1.487m vs 1.45m f’cast, 1.471m prev

Market Movement Recap

12:09 PM Stronger overnight thanks to Europe, but weaker as domestic session progresses, possibly finding support now.  MBS down 3 ticks (0.09) and 10yr up half a bp at 4.445.

02:53 PM Decent recovery for MBS into the close with 6.0s up 1 tick (0.03).  10yr yields are unchanged at 4.441.

04:27 PM Heading out near unchanged levels with MBS down only 1 tick (0.03) and 10yr yields perfectly unchanged at 4.441.
Source: Mortgage News Daily