• Retail Sales
  • -0.8 vs -0.1 f'cast, 0.4 prev (revised down from 0.6)
• Jobless Claims
  • 212k vs 220k f'cast, 220k prev
• Import prices
  • 0.8 vs 0.0 f'cast, -0.7 prev
• Export Prices
  • 0.8 vs -0.1 f'cast, -0.7 prev
• NY Fed Manufacturing
  • -2.4 vs -15 f'cast, -43.7 prev
• Philly Fed Index
  • 5.2 vs -8.0 f'cast, -10.6 prev

The biggest data of the morning and the biggest story for bonds is the big miss on Retail Sales.  If this report were released in a vacuum, we might be seeing a more one-sided reaction.  But the other reports are not insignificant (with the exception of Import/Export prices, which never seem to move the needle) and all of the rest were stronger than forecast.  

This accounts for some of the push-back after a decent initial rally.  10yr yields were as low as 4.17, but are back up to 4.193 now--still down 5.2bps on the day.

MBS are up at least 6 ticks (.19) and probably a tick or two more after adjusting for illiquidity.