When it was limited to social media, it was one thing, but alarming headlines regarding seemingly under-reported labor market visions hit the mainstream today. Given the big role or the labor market in the rate world these days, that seems highly relevant at first glance. But as was the case the last time the QCEW (Quarterly Census of Employment and Wages) was revised, there was plenty of sound and fury with very little significance for markets. The revision will be out on Wednesday morning. It isn't a new jobs number, and the market already expects a negative revision between 600k and 1m for the 12 months ending March 2024. Why all the focus on this topic (which pertains to data that's almost 6 months old)? Because it was a very boring, low-volume, uninspired day for bonds despite incidental gains.
Roughly unchanged overnight but gaining ground early. MBS up 3 ticks (.09) and 10yr down 3.5bps at 3.837
01:05 PM
Best levels of the day. MBS up 5 ticks (.16) and 10yr down 5.2bps at 3.82
03:34 PM
sideways at best levels. No change from the last update and minimal movement since then.
Lock / Float Considerations
Bonds are in a holding pattern with 10yr yields just under 4% until further notice. Risk and reward are muted at the start of the week--at least as far as scheduled events are concerned. Volatility potential increases with scheduled events on Thursday and Friday (and possibly even Wednesday afternoon's Fed minutes).