Bonds Cap Stellar Week/Month With Strongest Close Bonds ended the week/month at their strongest levels with 10yr yields breaking below the 4.0% floor to close at 3.95+. In addition to the low outright levels, the journey was accomplished with minimal volatility along the way. This is potentially surprising given this morning's much higher PPI numbers, but as discussed in the AM commentary, PPI is notoriously volatile and hasn't had a noticeable impact since 2024.
Next week brings the typical early month, big ticket econ data (ISM, ADP, and the jobs report). Econ Data / Events Core PPI m/m (Jan) 0.8% vs 0.3% f'cast, 0.7% prev PPI m/m (Jan) 0.5% vs 0.3% f'cast, 0.5% prev PPI y/y (Jan) 2.9% vs 2.6% f'cast, 3% prev Market Movement Recap 08:34 AM No reaction despite balmy PPI. MNS up 1 tick (.03) and 10yr down 2.2bps at 3.982 01:03 PM MBS up 2 ticks (.06) and 10yhr down 3.5bps at 3.969 03:27 PM MBS up 2 ticks (.06) and 10yr down 3.7 bps at 3.967.
