Despite onslaught from Fed speakers, bonds hold strong gains
Oil prices, Asian stock indices, US stock futures, EU bonds, EU stocks and US Treasury yields… All of the above have been steadily declining over the course of the day’s session in the middle of a wide risky trade. A technical break in the uptrend for rates in June added momentum. With early gains in place, markets faced an onslaught of Fed speakers left by Fed Chairman Powell during scheduled congressional testimony.
Strong overnight gains with an early follow as domestic traders start their day. 10-year down 11.7 basis points to 3.16 and MBS up more than 3/8 of a point.
Most bond gains were intact before Powell, but Powell didn’t hurt (or say anything new, really). 10y down 12.3 basis points to 3.156 and MBS up half a point to 99-26 (99.81).
On the side at stronger levels throughout testimony from Powell and other Fed speakers. 10-year yield down 13.5 basis points to 3.143%. MBS up half a point at 99-25 (99.78).