|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 Moderately Stronger to Start Domestic Session
Posted to: Micro News
Monday, August 04, 2014 9:06 AM
Trading was fairly quiet in the overnight session. 10yr yields held a narrow range between 2.51 and 2.49. The weakest level were seen right at the start of the Asian session. Bonds improved somewhat after weak economic data in China.
The biggest headline of the night was the announcement of a bailout for Portugal's troubled Banco Espirito Santo. The bank's stock and Portuguese markets accounted for most of the market reaction, with heavily diminishing returns for the rest of the European bond market and overnight Treasury trading.
With the onset of domestic trading, the normal increase in volume and participation has been positive for bond markets. Both MBS and Treasuries crossed the 8AM threshold unchanged vs Friday's latest levels, and both have improved since then.
Fannie 3.5 MBS are up 2 ticks at 102-12 and 10yr yields are down 2.15bps at 2.484. There is no significant data on the calendar today. The only game in town from a market-watching standpoint is to keep an eye on technical levels in Treasuries. Things don't get serious for 10's unless yields approach 2.44 or 2.56. It would be a surprise to see either of those broken today.
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.