- Empire State Manufacturing Index
- 20.1 vs 15.0 forecast
- Retail Sales
- 0.3 vs 0.3 forecast
- Core Retail Sales +0.4 vs +0.4
Bonds were already weaker in the overnight session in what has largely been another yield curve positioning trade (with the curve bounce at recent lows) in conjunction with a technical move up and away from the 2.95% floor.
The Retail Sales data motivated the next wave of selling, simply by coming in as-expected. This IS NOT some sort of reaction to implications for a growing economy. After all, stocks are weaker since the news hit. Rather, this is about bonds giving up hope when they saw they'd get no help from weak data.
10yr yields crested 6-year highs and are currently up 4.4bps at 3.046. Fannie 4.0 MBS are down a quarter point at 101-08 (101.25).
