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Initial rally followed by a sell-off after CPI. 10yr up 1.7bps at 4.302. MBS still 3 ticks (.09) higher on the day, but post-CPI gains are erased.
Off the weakest levels. 10yr up 1.3bps at 4.296 and MBS up an eighth of a point.
Turning out to be fairly uneventful. MBS up 5 ticks (.16) and 10yr up 0.7bps at 4.292
Strongest levels since the post-CPI selling. MBS up 6 ticks (.19) and 10yr nearly unchanged at 4.287
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Most of the post-CPI gains are now erased. In fact, 10yr yields are at new highs for the day, up 1.7bps at 4.301. This reaction is more in line with the internal components addressed in our morning commentary.
MBS are still technically stronger on the morning, but have given up all of the post-CPI gains. 2yr yields have also back-tracked, but Fed Funds Futures are still doing a bit better. Bottom line, only the very shortest-term debt is seeing any benefit at this point.