Bonds were at the top of their most recent range last Friday, but buyers emerged after Powell’s Jackson Hole Speech. The new week brought a smooth but obvious version of the same trade as both stocks and bonds improved on the NYSE opening. Ultimately, this has only helped add to a sideways range as markets wait for this week’s data – especially Friday’s big job report.

  • Fed MBS purchases 10 a.m., 11:30 a.m., 1 p.m.

  • Outstanding home sales -1.8 vs. +0.4 f’cast, -2.0 prev

09:21 am

Bonds were slightly stronger in the night session despite slightly higher EU yields. 10 years down .3bps at 1.307 and 2.0 UMBS by 2 ticks (0.06) at 101-13 (101.41).

11:31 a.m.

Modest additional gains after 10am (Fed TSY buy operation, month-end buyers, and technical triggers). The 10-year rate of return now drops 2 basis points to 1.29%. 2.0 UMBS by an eighth at 101-16 (101.5).

3:10 p.m.

Ultra-flat at slightly higher levels with effectively zero movement in the PM hours. 10 years down 2.5bps to 1.285 and MBS still up 1/8.