Modestly weaker overnight and no reaction to AM data so far. MBS down an eighth and 10yr up 1.7bps at 4.258
No major reaction to PCE data. MBS still down an eighth and 10yr up 2bps at 4.261
Bouncing back a bit. MBS down only 2 ticks (.06) and 10yr up only 1.3bps at 4.254
MBS down 3 ticks (.09) and 10yr up 0.8bps at 4.249
Bonds found a bid along with stocks yesterday afternoon after Trump announced a "framework of a deal" on Greenland. Markets were much less interested in U.S. access and more concerned with pausing the more immediate market-related implications (new tariffs and changes in foreign demand for Treasuries). This notion was reinforced this morning as there was no reaction at all to new comments saying the U.S. would have "total access" to Greenland with "no time limit."
The early round of econ data also failed to inspire, although that's no surprise given the stale nature of GDP and generally limited impact of weekly jobless claims (in addition to the fact that jobless claims are sticking to the same script seen in the past 2 years).
All that remains is the PCE inflation data at 10am ET, but it should be noted this is for the months of Oct/Nov and that we've already received CPI/PPI inflation reports for December. Data aside, yields have been trending gradually higher in concert with European markets, but Treasuries still retain a majority of yesterday's gains.