As seen in the recap of live alerts below, this morning's gains for MBS and Treasuries arrive on the heels of data that normally can't be counted on for the amount of market movement it seems to have created. The 10am New Home Sales data looks like it mattered to domestic markets, but there's no question that other factors are in play, including rising oil prices and what had been an ongoing rally in European bond markets. 10yr yields look to have bottomed around 2.21 and Fannie 3.5 MBS topped out at 102-19. At this point we're just hoping for volatility to stay at bay into the afternoon and hang on to the moderate level of gains that began the day.
After Greece announced that the remaining "international law" bondholders would get an extension for the private sector bond swap, through April 4th, risk markets took a positive turn with stocks surging and bond markets weakening. But Treasuries weren't interested in chasing stocks too much higher and held onto a supportive ceiling at a pivot point in the mid 2.24's. Fannie 3.5's bounced at 102-10 and currently sit at 102-12. The rather precipitous drop from earlier highs prompted some lenders to reprice for the worse, but risks are abating now.
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