Bonds Punt. Focus Turns to Friday's Econ Data Bonds spent the past 2 days pushing back toward slightly higher yields after the 10yr nearly hit 4.0% in Tuesday's overnight session. While there was probably some technical resistance at work, Thursday suggests it wasn't a lasting, thematic shift. In other words, rather than remain committed to an ongoing push back toward higher levels, yields were flat to slightly lower. Perhaps this is as simple as 10yr yields hitting the 4.10 mark this morning and traders playing a narrow 4.0-4.10 range until econ data makes a breakout suggestion.
On that note, Friday is the busiest morning of the week with the 1st look at Q4 GDP as well as December PCE inflation. Econ Data / Events Jobless Claims (Feb)/14 206K vs 225K f'cast, 227K prev Philly Fed Business Index (Feb) 16.3 vs 8.5 f'cast, 12.6 prev Market Movement Recap 08:41 AM Weaker overnight and little reaction to econ data. MBS down 3 ticks (.09) and 10yr up 2.5bps at 4.102 12:08 PM Steady gains all morning. MBS up 1 tick (.03) and 10yr up less than half a bp at 4.081 01:38 PM Best levels of the day. MBS up 2 ticks (.06) and 10yr down 1bp at 4.068
