Bonds Hold Gains Despite Ongoing Recovery in Stocks

1 Hour, 24 Min ago

The stock market factored into the bond market’s performance on Friday. In pre-market trading stocks managed a big bounce after NY Fed’s Williams spoke favorably about December’s rate cut potential. Bonds benefited from that comment initially, but the stock rally quickly forced bonds to find a floor for the day. From then on, stocks continued putting upward pressure on rates, but the net effect was that bonds simply held sideways whereas they might have otherwise continued to rally.

- Non Farm Payrolls (Sep)
  - 119K vs 50K f’cast, 22K prev
- Participation Rate (Sep)
  - 62.4% vs — f’cast, 62.3% prev
- Philly Fed Business Index (Nov)
  - -1.7 vs -3.1 f’cast, -12.8 prev
- Philly Fed Prices Paid (Nov)
  - 56.10 vs — f’cast, 49.20 prev
- Unemployment rate mm (Sep)
  - 4.4% vs 4.3% f’cast, 4.3% prev

09:16 AM

Stronger overnight, mostly in line with stock losses. Some additional gains on Fed’s Williams’ rate cut thoughts. MBS up just over an eighth and 10yr down 2.6bps at 4.059

11:37 AM

Near weakest levels but still in positive territory. MBS up 3 ticks (.09) and 10yr down 1.2bps at 4.072

12:27 PM

weakest levels. MBS unchanged and 10yr up 0.2bps at 4.085

02:54 PM

Back near strongest levels now with MBS up 5 ticks (.16) and 10yr down 2.2bps at 4.062

Bonds Hold Gains Despite Ongoing Recovery in Stocks