Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
33,877
# of User Comments
 

Send Article via Email

REGISTERED USERS (Free!):
Can forward to 6 email addresses at a time. Register or Login

Registered users also get the additional advantage of Co-branded Emails and Landing Pages. Learn more about these features.

Your Name: 
Your Email: 
I want to forward this to
(Enter Email Address Below) :
Include a Personal Message (optional)

Please add 7 and 4 and type the answer here:
Leave this field blank.
Email Preview Below:
This feature is now 100% free. Learn More About Co-branded Email and our other Co-branded Services.
 
This email was sent to you by:
Harry Chriest |
Mortgage News Daily

Message:   YOUR MESSAGE HERE
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 Turn Positive After Weaker Overnight Session
Posted to: Micro News
Tuesday, May 06, 2014 9:11 AM

Forward this email:  Send a copy of this story to someone you know that may want to read it.

Most Asian markets remained closed but European markets were back in action today.  Bonds were mostly weaker overnight after strong manufacturing data in Europe.  Treasuries didn't fully participate in the move, but were slightly higher in yield during the overnight session.

8:20am (the CME 'pit' open) saw positive tradeflows pick up in bonds and increased selling in stocks.  Even in this digital age, the pit hours at the CME are still when most of the trading is happening as some large, consistent market participants use the services of advisors that work on pit hours (that's why 3pm is still the most commonly accepted bond market 'close.'  8:20am is just the open for that close, despite the fact that electronic futures trading has been going on all night).

Sometimes we see a shift in tone or volume at 8:20am and this was the case today.  With respect to the trades that were waiting for the 820am open, it was obvious there was a positive bias.  After being as high as 2.623 overnight, 10yr yields began moving lower, hitting 2.605 even before the inconsequential Trade Deficit data.  They're currently at 2.60.

Fannie 4.0 MBS are up 2 ticks after being down 3 ticks at the open.  Fannie 3.5s are also up 2 ticks at 101-31.  There is no significant economic data today, but the 3yr Auction at 1pm could cause a small reaction.  That said, 'tradeflows' should dominate the day.  With that in mind, nothing is really happening while 10yr yields remain above 2.57, and even more so above 2.60.  In other words, trading levels themselves will be the best guidance and commentary on market sentiment.  The longer we stay above those levels, the greater the motivation to remain inside the existing range.




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.

Forward this email:  Send a copy of this story to someone you know that may want to read it.

 

More From MND

Mortgage Rates:
  • 30 Yr FRM 4.01%
  • |
  • 15 Yr FRM 3.17%
  • |
  • Jumbo 30 Year Fixed 3.93%
MBS Prices:
Recent Housing Data:
  • Mortgage Apps 11.56%
  • |
  • Refinance Index 23.29%
  • |
  • FHFA Home Price Index 0.67%