Mixed reaction to the data. The range remains intact 1 hour, 2 minutes mixed reaction to data. Range still intact European bonds set the tone in the evening session after the normally hawkish ECB member made dovish comments about near-term rate hike/halt expectations. German Bunds climbed to a full 10 basis point peak to bottom while US Dozens barely managed to make 5 basis points over the same time frame. AM econ data in the US created some two-way volatility as the retail sales headline was at odds with internal factors, but bonds were already having second thoughts as evidenced by the apparent pullback with resistance at 3.75% overnight. Returns were sideways and volatile until Europe closed for the day. After that, there was a modest drift toward – but not into – a weaker region. All in all an uneventful day is well in line with the broader sideways baseline expected between last week’s rally and next week’s Fed announcement. Retail Sales 0.2 vs. 0.5 f’cast, 0.3 ex-NAHB Builder Confidence Industrial Production -0.5 vs. 0.0 f’cast, -0.5 ex 08:30am Nice gain overnight with Europe. 10 years down 6.7 bps at 3.742 and continuing after the data. MBS up 6 pips (.19) 10:38AM Quick sell-off as traders revisited the data, but are now recovering. Mohammed bin Salman rises by more than a quarter of a point. 10 years 12:41 PM The weakest levels of the day are at the closing of the European Union. The 10 year is still down 3.2 points per second at 3.777. MBDS reaches only 2 marks (0.06). 04:31pm Flattening out a bit now after reaching weaker levels after 3pm. The 10-year yield decreased to 2.8 basis points, at 3.781. MBS is currently unchanged after falling 2-3 points (0.06-0.06) Download our mobile app to get alerts for MBS Comments, MBS Rate Stream and Treasury Rates.