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Bond Markets Weaker After Strong Pending Home Sales Data
Posted to: Micro News
Monday, April 28, 2014 10:15 AM
While the range so far today is still too narrow for widespread reprice risk, some lenders who were already out with rate sheets could be considering it. MBS are now in negative territory after Pending Home Sales came in much stronger than expected.
- March Pending Home Sales 97.4 vs 95.3 forecast
- February revised to 94.2 from 93.9
- year-over-year -7.9 percent
This report typically isn't much of a market mover, but as we discussed in The Week Ahead, "it does generally do a good job of framing the approach to next month's Existing Home Sales. Because of the ongoing stagnation there as well as the stagnant forecast for today's data, any meaningful 'beat' (actual result coming in higher than forecast) could put bond markets on the back foot out of the gate."
That's exactly what we have so far, considering the action up until 10am was arguably sideways and that this is arguably the first 'real' move of the day. 10yr yields are up 3.4bps to 2.70 and Fannie 4.0s are now down 3 ticks on the day to 104-14.
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