Posted To: MBS CommentaryToday brought two events that should theoretically have helped bonds: a much weaker producer level inflation reading (2.4 vs 2.7 forecast for core PPI) this morning, and a fairly strong 10yr Treasury auction in the afternoon. But neither had much of an impact by the end of the day. To be fair, bonds did manage to gain a small amount of ground, but those gains were intact before the friendly events crossed the wires. This isn’t an out-and-out mystery, however. The PPI data is rarely a huge market mover in the first place. With the more important CPI coming up tomorrow (among other things), it’s no surprise to see today’s PPI offering little inspiration for would-be bond buyers. The 10yr auction suffers from a mostly similar fate . It is a positive anecdote for bonds, to be sure,…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.