Bonds Close Out Epic Week of Resilience With Friendly Data

Bonds Close Out Epic Week of Resilience With Friendly Data Friday was a logically friendly day thanks to slightly lower CPI. But no matter what happened on any of the other 4 days, this week was all about bonds ending up at much stronger levels in spite of a jobs report that should have sent rates higher on Wednesday. Ironclad justification remains impossible, but the leading theory involves heavy liquidation mode in stocks/commodities on Thursday. Holiday weekend positioning could also be a factor. As such, we'll learn a lot more next Tuesday--especially if stocks find a reason to stage a big bounce.  Econ Data / Events m/m CORE CPI (Jan) 0.3% vs 0.3% f'cast, 0.2% prev m/m Headline CPI (Jan) 0.2% vs 0.3% f'cast, 0.3% prev y/y CORE CPI (Jan) 2.5% vs 2.5% f'cast, 2.6% prev y/y Headline CPI (Jan) 2.4% vs 2.5% f'cast, 2.7% prev Market Movement Recap 12:45 PM Stronger After CPI and sideways since then. MBS up roughly and eighth and 10yr down 4bps at 4.06 01:52 PM Losing ground modestly.  MBS still up 2 ticks (.06) and 10yr still down 3.5bps at 4.066 02:58 PM MBS up an eighth and 10yr down 4.7bps at 4.053