MBS OPEN: GDP Slightly Worse Than Expected, Bonds Don’t Care

by admin on December 22, 2009

Posted To: MBS Commentary

MBS and Treasury prices continue their down-trending ways this AM. 4.5's are off 6 ticks at the moment to 100-12 and the 10yr is up in yield to a hefty 3.73. No major reaction in stocks however which continues a trend of decelerating gains that followed the sun around the globe last night (Asia Strongest, Europe a bit lighter gains, Domestic futures slightly positive). Bottom line on GDP, it's not moving bond markets this AM. That said, the internals of the GDP still may interest you. So here they are: US FINAL Q3 GDP +2.2 PCT (CONSENSUS +2.8), PREV +2.8 PCT; FINAL SALES +1.5 (CONS +1.9), PREV +1.9 PCT DEFLATOR +0.4 PCT (CONS +0.5), PREV +0.5 PCT PCE PRICE INDEX +2.6 PCT (CONS +2.7), PREV +2.7 PCT; CORE PCE +1.2 PCT (CONS +1.3), PREV +1.3 PCT CONSUMER SPENDING +2.8 PCT (PREV +2.9 PCT…(read more)

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