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10-year Treasury yields briefly top 5.30% and settle under 5.29%
Mortgage-backed securities fell 2 ticks, and the 10-year note was up 2.4 basis points to 5.269 at the time of the report.
U.S. Treasury bond prices slid again as 10-year yields hit another long term high, briefly breaking above 5.30% before settling just under 5.29%, Mortgage News Daily reported.
The outlet said early gains after 8:30 a.m. economic data faded fairly quickly, with some market observers tying the move to broadly stronger data, while others pointed to that PCE “beat” not being truly new given methodology changes.
Mortgage News Daily also cited a separate theory that a methodology shift excluding core PCE by 0.361, comparing July versus July unrounded, could imply Fed policy would be less aggressive than it otherwise might be.
It added that there may have been additional pressure from month or quarter end trading flows, though it noted those effects are difficult to confirm in the near term, while noting that MBS were down 2 ticks, about 0.06 on the day, and the 10-year yield was marked up 2.4 basis points to 5.269.