MBS closed at 98.22 (+8 ticks on the day), fully recovering from a midday dip as markets absorbed both the CPI and PPI data without a lasting selloff. The 30yr rate finishes at 6.57% — up just 1 basis point from yesterday despite a turbulent data week.

The day's arc ran hot-to-recovered. MBS opened at 98.13, sold off to 98.08 at midday as PPI hit (+6% annualized wholesale inflation) and the bond market processed it. Then buyers stepped back in. By the close, UMBS 5.0 was at 98.22 — 14 ticks off the intraday low and 8 ticks better than yesterday's close. The 10yr Treasury pulled back from a 4.48% midday high to close at 4.465%. This is the definition of bad news priced in: both inflation prints landed above comfort level, and MBS finished stronger anyway.

For borrowers, the close looks better than the headlines suggest. Yes, rates are at a 6-week high at 6.57%, and this week's CPI/PPI data removed any near-term case for Fed cuts. But the afternoon rally shows the bond market isn't panicking — it's recalibrating. Thursday's retail sales report is the next real test. A soft number gives rate-sheet relief by Friday morning; a strong one keeps 6.57% the floor. Borrowers who locked this week made the right call.