10yr Yields Crest 2.80, MBS at Fresh Lows After Factory Orders Data
Factory Orders data? Yes.
It doesn't typically have much of an impact, and today is no different, but it's at the right place, at the right time to nudge 10yr yields over the technical ceiling at 2.80. The data itself was slightly stronger than expected, coming in at +1.6 vs a +1.2 forecast. Taken together with a downward revision last month (-1.0 vs -0.7 previously), it's nothing to write home about, but continues to build a case that economic data may be moving away from the winter doldrums.
10yr yields are just over 2.80 at the moment and Fannie 4.0s are now down a full quarter point (8 ticks) to 103-21. Given the non-epic nature of the data, the selling pressure is similarly non-epic, and has actually already abated somewhat as I type. Not enough weakness for reprices.