• Jobless Claims
  
  • 221k vs 235k f'cast, 242k prev

Bonds were mixed overnight with longer-term Treasuries in weaker territory and shorter term Treasuries (and MBS) in better shape.  All of the above have lost ground in the wake of the stronger claims number.  MBS are down just over an eighth from opening levels, but still up 1 tick (.03) on the day. 10yr yields are up 2bps on the day at 4.297.

Credit the MBS outperformance to a duration profile that's more similar to a 5yr Treasury than a 10yr. From there, notice that 5yr Treasuries are also still a hair stronger on the day.  In other words, the MBS outperformance is completely boring and logical.