Stronger Start. It's Complicated
Stronger Start. It's Complicated
Tuesday morning joins a fairly long list of trading days where overnight bond market movement cannot be cleanly connected to news headlines or econ data. With yields having recently pushed up to multi-decade highs, and Fed policy expectations constantly shifting, this will be an ongoing phenomenon. Over the past several sessions, there's definitely been some organic buying in longer-term bonds (i.e. investors concluding 10yr yields around 5.3% represent a good entry point). The overnight rally followed a shift in Fed rate expectations. Oil prices correlated but the timing was off when it comes to the earlier rally. Over the last 2 hours, however, a spike in oil prices is indeed leading a bounce back toward higher yields.
Another Nice Round Trip
| Time | Event | Period | Actual | Forecast | Prior |
|---|---|---|---|---|---|
| Tuesday, Oct 13 | |||||
| 6:00AM | Sep NFIB Business Optimism Index | Sep | 97.9 | 98 | 98.7 |
| 8:15AM | ADP Employment Change Weekly | 24.75K | 23.75K | ||
| 10:00AM | Sep Existing home sales (ml) | Sep | 3.99M | 3.95M | 3.98M |
| 2:00PM | Sep Federal budget (bl) | Sep | $-29B | $-167B | |
| Wednesday, Oct 14 | |||||
| 12:00AM | Roll Date - UMBS 15YR, Ginnie Mae 15YR | ||||
| 7:00AM | Oct/09 MBA Refi Index | Oct/09 | 515.8 | ||
| 7:00AM | Oct/09 MBA Purchase Index | Oct/09 | 145.1 | ||
| 7:00AM | Oct/09 Mortgage Market Index | Oct/09 | 204.7 | ||
| 8:30AM | Sep y/y Headline CPI (%) | Sep | 3.6% | 3.4% | |
| 8:30AM | Sep m/m Headline CPI (%) | Sep | 0.6% | 0.4% | |
| 8:30AM | Sep y/y CORE CPI (%) | Sep | 2.5% | 2.4% | |
| 8:30AM | Sep m/m CORE CPI (%) | Sep | 0.2% | 0.3% | |
| 2:00PM | Fed Beige Book | ||||