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Bonds slide after PCE data tilts above targets

Core PCE landed on target at 0.246%, but headline PCE came in a tenth of a point above both monthly and annual targets, pushing 10-year yields up more than 2 bps and sending MBS lower.

Reported · Written up by our desk · Inflation

Mortgage News Daily reports that bond markets moved lower after new PCE inflation data showed headline figures running above the monthly and annual targets.

The outlet said core PCE was on target, at 0.246%, which was close to rounding up to 0.3 versus 0.2, but headline inflation was about a tenth of a point above the targets.

According to Mortgage News Daily, traders appeared positioned for better news, and the immediate reaction included a quick sell-off.

The report added that MBS were down by more than an eighth and that 10-year Treasury yields were up more than 2 bps from pre-data levels.

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