Bonds started the day in fairly good shape with a rally at the open and a certain measure of defiance of another jump in fuel prices. The defiance quickly gave way to underperformance--a fact that suggests short-term tradeflow considerations for the bond market or perhaps that we're simply putting the trading day under too much of a microscope. Either way, both yields and oil prices were higher by the end of the day although the 10yr avoided breaking above last week's highs.
Roughly unchanged after overnight volatility. MBS unchanged and 10yr up 0.2bps at 4.79
10:37 AM
MBS now down 2 ticks (.06) and 10yr up 0.1bp at 4.789
02:52 PM
MBS down 5 ticks (.16) and 10yr up 2.3bps at 4.811
Lock / Float Considerations
9/8/26 - Another day, another reminder of the ongoing volatility potential associated with the Iran war. In addition, there's high-consequence data on top with this week's CPI/PPI. A defensive strategy continues to make the most sense until something definitively changes (i.e. a clear shift in in prevailing negative momentum).
