Perfectly Acceptable Conclusion to a Potentially Volatile Week

Perfectly Acceptable Conclusion to a Potentially Volatile Week With markets closed for the Juneteenth holiday on Friday, Thursday marked the end of the trading week. Considering the sell-off on Wednesday afternoon, the week had the potential to end on an uncomfortably volatile note. Instead, bonds pushed back nicely in the other direction--even though MBS didn't recoup as much of their losses as 10yr Treasuries. True, there is some sense of foreboding in the inability of 10yr yields to move below 4.42%, but all told, the week was actually surprisingly calm after factoring in Thursday's gains. Econ Data / Events Continued Claims (Jun)/06 1,810K vs 1800K f'cast, 1795K prev Jobless Claims (Jun)/13 226K vs 225K f'cast, 229K prev Philly Fed Business Index (Jun) 10.3 vs 10 f'cast, -0.4 prev Philly Fed Prices Paid (Jun) 53.20 vs -- f'cast, 47.90 prev Market Movement Recap 08:55 AM Bonds recover much of post-Fed sell-ff overnight, but mostly in the long end. 2yr yields lost more ground. 10yr yields are down 5bps at 4.446.  MBS are up just under a quarter point. 10:24 AM MBS up 9 ticks (.28) and 10yr down 6.3bps at 4.434 03:02 PM MBS up 5 ticks (.16) and 10yr down 4.2bps at 4.454