As the week drew to a close on Friday, February 28th, 2025, both Mortgage-Backed Securities (MBS) and Treasuries hit their peak levels for the month. This surge in bond strength was particularly impressive given the rapid rebound in the stock market. The morning’s Personal Consumption Expenditures (PCE) data failed to make a significant impact, with the unrounded core month-over-month figures falling below expectations, setting the stage for the robust momentum that followed. Looking ahead, investors are eagerly awaiting next week’s major economic data releases, culminating in the release of the latest jobs report on Friday.
### Market Movement Highlights
Throughout the trading day, there were several key moments that reflected the evolving market conditions and bond performance:
#### Morning Market Activity
At 9:45 AM, following the release of the PCE data, both MBS and 10-year Treasury yields experienced modest gains and losses, respectively. MBS prices rose by 2 ticks (.06), while the 10-year yield dipped by 1.5 basis points to 4.246%.
#### Midday Trends
By 12:18 PM, the market remained choppy but showed signs of improvement. MBS prices continued to climb, increasing by 3 ticks (.09), while the 10-year yield dropped by 2.1 basis points to 4.24%.
#### Afternoon Update
As the afternoon progressed, MBS prices held steady at 3 ticks (.09), while the 10-year yield fell further to 3.7 basis points, reaching 4.223% by 2:22 PM. By the time the NYSE closed at 4:00 PM, bonds were at their peak levels for the day, with MBS prices up by 5 ticks (.16) and the 10-year yield down by 4.9 basis points, settling at 4.213%.
### Expert Insights and Future Outlook
Despite the day’s fluctuations, the overall trend towards stronger bond performance was a positive sign for investors. The upcoming release of key economic indicators, including the next jobs report, will likely influence market sentiment and further shape investment strategies in the coming days.
As investors continue to navigate the shifting landscape of financial markets, staying informed and attuned to emerging trends will be crucial for making sound investment decisions. By monitoring market developments and leveraging real-time data, investors can position themselves for success in an ever-changing economic environment.
