• Jobless Claims
  • 5.245m vs 5.105m forecast
  • continued claims 11.976m vs 13.5 forecast
• Philly Fed
  • -56.6 vs -30.0 forecast
• Housing Starts
  • 1.216m vs 1.3m forecast, down 22.3% m/m

Bonds were slightly stronger in the overnight session with most of the gains arriving around 7:30am.  Jobless Claims data is a popular focus for both sides of the market right now and the lower-than-expected number in continued claims (and the absence of a much worse weekly claims number) gave a quick boost to stocks.  To a lesser extent, it prompted a brief, small selling spree in bonds.

Selling pressure didn't even register for MBS and it already looks to be reversing course in Treasuries.  10yr yields are back down to .61% (2bps stronger on the day).  2.5 UMBS are 1-2 ticks (.03-.06) stronger, trading just over 104.