Today offers firm confirmation of the range breakout we’d been hoping to see this week.  These sorts of breakouts are positive signals in the bigger picture, but risk-averse rate watchers can use them as early warning signs for short-term shifts.  Today’s video discusses this in greater detail.

Econ Data / Events

Market Movement Recap

08:16 AM

Bonds were modestly weaker overnight, but domestic buyers got an early start around 6:30am.  With another slight boost from weak ADP data, Treasuries just turned positive and MBS are effectively unchanged.

11:03 AM

Gains extending a bit now, with more friendly Fed-speak, this time from Williams.  10yr yields down 1.6bps on the day to .66% and 2.0 UMBS up 2 ticks (0.06) at 103-11 (103.34).

01:28 PM

Comments from Fed speakers have generally been supportive.  Bonds hit their best levels just before noon and have pulled back a bit since then.  The bounce coincides with stock market strength.  10yr yields still down 2.3bps on the day at .649.  UMBS 2.0 still up 2 ticks (0.06) at 103-11 (103.34).