|This email was sent to you by:|
Harry Chriest |
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 Much Weaker Into Domestic Session; MBS Lagging
Posted to: Micro News
Thursday, December 19, 2013 8:52 AM
Treasuries were calm overnight, holding a narrow range between 2.878 and 2.90. As domestic traders started filing in for the morning, bonds began selling and 10yr yields have gradually ticked up to 2.933.
Unfortunately, there was a noticeable bounce at the inflection point near 2.92, and there's a risk this will now be treated as resistance (floor) going forward.
MBS are even worse off. Fannie 4.0s are already down another 14 ticks (almost half a point) in addition to the 14 ticks lost yesterday (102-20 at the moment).
Jobless Claims were weaker than expected, but it did nothing to help bond markets. This is snowball selling and it will either need to run its course or encounter exceptionally weak economic data at 10am. As far as "running its course" goes, that could happen any time or 10's could drift another 4bps higher, bringing MBS another .375 lower, give or take an eighth.
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.