MBS RECAP: Super Weak Data Mostly Tuned-Out Ahead of Holiday
Posted To: MBS CommentaryBond markets have a habit of getting progressively more quiet heading into Thanksgiving. It’s not the kind of thing you should bank on from a strategy standpoint (because there are exceptions), but you shouldn’t be surprised when it happens. And it happened in grand fashion this week with 10yr yields walking out the door at 3.065% every day for the past 4 days! When bonds are this determined to stay sideways, economic data that might otherwise have a bigger impact, instead goes unnoticed . That was the case with today’s Durable Goods which was relatively awful. Not only did this month’s data miss the mark by much more than expected, last month’s numbers were also revised noticeably weaker. There was a token reaction at first, but bonds soon were right back to the modestly…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.