In the recent bond market, last week’s fluctuations provided some optimism that the latest jobs report would not escalate pressure for higher rates. Despite yields reaching their highest levels late last week, today marked a small victory as bond prices returned to the lower range of last week’s activity without significant market catalysts. The NY Fed Manufacturing Index did influence the market positively, but the overall movement seemed to reflect a yield curve adjustment rather than a broad bond rally, with longer-dated yields dropping while short-term yields remained steady. Key economic data is anticipated on Thursday, which could impact the market further. Throughout the day, Treasuries exhibited modest gains, with the 10-year yield decreasing to around 4.035% and mortgage-backed securities also showing a slight uptick.
https://www.mortgagenewsdaily.com/markets/mbs-recap-10152024