MBS weren't quite able to keep up with the Snowball rally in Treasuries today, but the gap lessened into the afternoon. Chalk this up to an abundance of Treasury-specific motivations in the morning hours, including ebbs and flows related to corporate bond issuance.
The more mainstream assessments of the day might make predominant mention of "weaker economic data" as a key factor in the strength. While it's true the data was weaker (especially the NAHB Housing Market Index), hindsight shows the technical and tradeflow considerations were at least as big a motivation. This is further corroborated by the divergence between stocks and bonds.
Tomorrow brings a meatier dose of data, with Housing Starts and Producer Prices at 8:30am, Fed speak from Bullard at 1pm and the Minutes from the most recent FOMC Meeting at 2pm. The meeting itself didn't produce much drama in late January, and there's not a lot of speculation that the Minutes will be intensely interesting. That said, official communications from the Fed always have the potential to surprise markets, so volatility can't be ruled out for tomorrow afternoon.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing
is available via MBS Live.
| MBS || |
96-21 : +0-08
100-28 : +0-07
104-11 : +0-06
| Treasuries || |
0.3025 : -0.0165
2.7087 : -0.0363
3.6760 : -0.0240
| Pricing as of 2/18/14 4:30PMEST |
Today's Reprice Alerts and Updates
2:33PM : Off The Best Levels Into PM Hours
12:25PM : Snowball Buying as Treasuries Break Resistance; MBS Following Reluctantly
10:33AM : Weather Made for Rapidly Cooling Builder Sentiment; Bonds Don't Really Care
9:14AM : Bond Markets Trying to Hold Moderate Overnight Improvement
MBS Live Chat Highlights
: "There are quite a few articles in the knowledge base as well (http://mndne.ws/1cVDYlQ), but of course feel free to ask questions here. "
Matthew Graham : "Following this stuff can feel overwhelming at first (and in some ways, that should continue), but if you explore the knowledge base, read the updates, and ask questions about stuff you don't understand, it's well worth the effort."
Victor Burek : "very smart choice becoming a member here"
Oliver Orlicki : "best money you will ever spend "
Oliver Orlicki : "Some of the sharpest in the biz are on here regularly"
Hugh W. Page : "Can't imagine my job w/o MND"
Hugh W. Page : "Love co-branded newsletters, articles, etc. awesome tool to reach out to your contacts referral base, etc."