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stronger after CPI. 10yr down 7.6bps at 4.541. MBS TBD, but should be up more than a quarter point soon when they catch up
off the strongest levels on a combination of war headlines and Warsh inflation commitments. MBS up 11 ticks (.34) and 10yr down 2.9bps at 4.587
MBS up 3/8ths and 10yr down 3.4bps at 4.581
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The Consumer Price Index came in FAR below expectations with a core reading of 0.0 vs 0.2 forecasts. In unrounded terms, it was -0.17%. Headline CPI was more sharply negative than expected at -0.4 vs a -0.1 forecast. Supercore (which excludes housing) was down -0.2 which is the first negative reading in over a year. Core goods also remained in negative territory for a second straight month. Bonds rallied instantly, led by the short end of the curve (more closely tied to Fed rate expectations). But even 10yr yields are down over 5bps and MBS are up more than 3/8ths of a point.