Modest Gains Maintained After Intraday Slippage

Modest Gains Maintained After Intraday Slippage Slippage is a bit less severe than leakage. Neither of them will turn a green day red, but they both erode morning gains. Today's gains primarily followed a pre-market comment from Trump who said the US was in the middle of final negotiations to end the Iran war. Bonds hit their best levels shortly thereafter and then the slippage set in. The backtracking was more evident in Treasuries with the 10yr losing almost half of the day-over-day gains. MBS managed to hold firmer, and were still broadly in line with the middle of the AM range by 4pm. Friday brings the jobs report. While it hasn't been as big of a flashpoint recently, we'd never rule out a reaction in the event of a big beat/miss. Econ Data / Events Jobless Claims (May)/30 225K vs 213K f'cast, 215K prev Market Movement Recap 08:42 AM Decently stronger overnight and no drama so far. MBS up 7 ticks (.22) and 10yr down 4.1bps at 4.455 11:34 AM Sideways so far and just a hair weaker.  MBS still up 6 ticks (.19) and 10yr down 3.1bps at 4.465 03:31 PM Treasuries near weakest levels but 10yr still down 2.5bps at 4.471. MBS still up 6 ticks (.19).