The economic calendar kicked off the week with a bang as Gross Domestic Product (GDP) data was released, providing insights into the US economy’s performance. The numbers showed a moderate growth rate, with imports playing a significant role in the data.
When excluding the impact of increased imports, domestic consumption appeared normal and in line with last quarter’s figures. Inflation remained tame, but traders are eagerly awaiting future reports to gauge the effects of tariffs. Treasury issuance was confirmed at flat levels.
The bond market reacted cautiously, with little change seen in prices despite month-end trading bringing some volatility. The employment cost index showed a slight uptick after initial weaker data, which bounced back due to safe-haven buying and stock selling.
As the day progressed, the market trend began to stabilize, with MBS (mortgage-backed securities) remaining unchanged and 10-year yields down slightly at 4.165. A brief surge in bond buying towards the end of the month helped to calm the market, leaving it mostly sideways by close.
Source: https://www.mortgagenewsdaily.com/markets/mbs-recap-04302025