Good Reminder That The Market Gets to Decide What Matters

Good Reminder That The Market Gets to Decide What Matters If oil, Treasuries, stocks, and the rest of the market were completely closed, and if we could only estimate the probable impact of the news that's been available over the past 3 days, it would be hard to make that case that bond yields should be any lower than they were on Friday. In fact, some of the newswires (the ones citing various military clashes) might lead one to suspect yields should be higher. But here we are with 10s down more than 6bps and MBS up almost half a point just after 3pm ET--a good reminder that the market gets to decide what to make of the available news. Econ Data / Events Philly Fed Non Manufacturing -23.6 vs -13.0 f'cast Chicago Fed Activity Index .14 vs -.03 Market Movement Recap 08:43 AM Overnight peace optimism gains holding. MBS up half a point and 10yr down 8bps at 4.482 11:02 AM Off best levels. MBS up 3/8ths and 10yr down 5.6bps at 4.502 02:45 PM Modest recovery. MBS up 14 ticks (.44) and 10yr down 6.1bps at 4.498