Fairly Resilient Despite Bumpy Auction

Fairly Resilient Despite Bumpy Auction

The relevant morning econ data was limited to Jobless Claims. While the weekly and continuing numbers were both higher than expected, it wasn’t a big enough miss to spark any sort of decisive rally in bonds. MBS lost ground heading into the PM hours and lost some more ground after a poorly received 30yr bond auction. But whereas the auction could have been used as a front for additional selling, bonds generally did a decent job of holding their ground in the last few hours of the day. Friday’s calendar is empty. This doesn’t mean we won’t see any volatility–simply that it could not be driven by scheduled events.