Slightly stronger after PPI. MBS up 3 ticks (.09) and 10yr down 2.4bps at 4.46
Bonds selling off on headlines regarding Trump considering firing Powell. MBS now unchanged on the day and 10yr nearly unchanged at 4.48
Headlines retracted, but bonds not retracing the weakness. 10yr still close to unchanged at 4.48. MBS up 2 ticks (.06) on the day
TRUMP LIKELY TO FIRE POWELL SOON, WHITE HOUSE OFFICIAL SAYS
OFFICIAL CAUTIONS THERE IS NO EXACT TIMELINE
The newswires above are causing a huge explosion of volume in the bond market with the first 5 minutes outpacing the 5 minutes following yesterday's CPI release. 10yr yields have risen, which is to be expected in this scenario (i.e. shorter term bonds/bills would hold steady or improve based on expectations for a more dovish Fed chair but the market would trade the longer end higher in yield).
10yr yields are nearly back to unchanged levels at 4.48.
MBS are doing a bit better by comparison--still up almost an eighth on the day, but also down an eighth from the highs. Jumpy lenders could technically justify a negative reprice if this move doesn't reverse course quickly.