Bonds Find Some Solace in Warsh In Spite Of a Bit More Selling
Wed, Jul 1 2026, 3:46 PM
Bonds Find Some Solace in Warsh In Spite Of a Bit More Offering
The previous 2 days have actually been rough for the bond market– absolutely nothing devastating, however “brisk” in regards to unanticipated selling pressure. To be fair, buying/selling pressure is never ever genuinely anticipated (otherwise, why wait to trade it?), and greater volatility was certainly a risk surrounding quarter-end and the information calendar. Today could have been even worse, but the marketplace discovered some solace in this morning’s Warsh remarks the ECB SINTRA conference. Warsh adhered to the “no forward assistance” script but handled to use some in a roundabout way by saying inflation risks have come down which he was open to various views on the Fed’s balance sheet size. While not real forward guidance, it was a net-dovish message that the market reacted to. Shorter-term financial obligation did best, but 10yr yields are ending up about 2bps lower than they were before Warsh.
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- ADP tasks (Jun)
- 98K vs 113K f’cast, 122K prev
- ISM Production
- ADP tasks (Jun)
08:43 AM
Offering continues this morning. MBS down an eighth and 10yr up 2.7 bps at 4.49.
09:51 AM
Off the weakest levels. MBS unchanged and 10yr nearly the same at 4.467
01:53 PM
MBS up 2 ticks (.06) and 10yr down 0.2 bps at 4.463
03:23 PM
MBS down 2 ticks (.06) and 10yr up 1.3 bps at 4.479
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