|This email was sent to you by:|
Mortgage News Daily
Email alerts, such as this one, are a free service
provided by Mortgage News Daily. If you would like to receive an alert when important news breaks
please register to join our community
Bond Markets In Better Territory After Weak Data, Stock Slide
Posted to: Micro News
Friday, November 16, 2012 10:03 AM
The overnight session was essentially a non-issue for bond markets as 10yr yields held within the same range of yields that prevailed during yesterday's post-ISM data rally--just under 1.60 on the high end and just over 1.575 on the low.
We opened up in slightly (very slightly) weaker territory in the domestic session, and leaked a bit weaker into the 9:15 Industrial Production data, which was much worse than expected. Although the data cite Megastorm Sandy as adjusting the rate-of-change by "nearly 1%," it doesn't seem that equities markets think that's enough of a mitigating circumstance. S&P futures are off nearly 10 points from their highs of the morning with much of the move arriving with the 9:30am cash open.
As has been the general case recently, bond markets have paid some attention to the stock sell-off, but clearly look like they're not eager to venture beyond important technical levels simply to give chase. 10yr yields are down to 1.587, but haven't eagerly tried to revisit the overnight lows despite the significant stock slide.
Fannie 3.0s are fairing a bit better (again) vs yesterday's range and have now actually hit a new 3-day higher up 5 ticks at 105-01.
More from MND:
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.