There’s a high bar for econ data to have any impact on bonds nowadays which’s especially real of inflation reports like this morning’s PCE. Fortunately, no one requires to make a case for PCE having an effect, but the small amount of assistance for bonds originated from a big miss in core retail sales and, to a lower extent, a relatively chunky down modification in GDP. Even then, the response was microscopic and tough to separate from a great little drop in oil rates that had actually been underway since around 4am ET. All of that has only deserved a 1.6 bp drop in 10yr yields and just over an eight of a point of enhancement in MBS.
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