Bond markets are just slightly weaker, and have thus far been doing a decent job of keeping those losses contained. There hasn't been much by way of 'market-movers' with cues instead coming from technical levels and traders reacting to other trades ("tradeflow considerations").
Treasuries were actually stronger overnight, in response to European bond market strength. But as soon as the domestic market began firing on all cylinders, the aforementioned tradeflows kicked off a very fast, but fairly well-contained bout of snowball selling. That brought 10yr yields from 2.594 to 2.629 in fairly short order.
It's a good idea to keep an eye on 2.625 as a sort of line in the sand to further weakness in Treasuries. 10yr yields are currently hovering in the 2.61's, and have been for about 2 hours now.
MBS are near their lows of the day, off 5 ticks in Fannie 3.5s and 2 ticks in 4.0s. Keep in mind that today's prices reflect June coupons while yesterday's were May coupons. That means the drop in prices looks much bigger than 2-5 ticks (more like 12-15). But in terms of actual movement, June MBS prices are only down the 2-5 ticks.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing
is available via MBS Live.
| MBS || |
97-23 : -0-06
101-28 : -0-05
104-31 : -0-02
| Treasuries || |
0.3909 : +0.0039
2.6179 : +0.0159
3.4489 : +0.0169
| Pricing as of 5/9/14 11:58AMEST |
Morning Reprice Alerts and Updates
11:34AM : ALERT ISSUED: MBS at Lows; Potentially Holding Ground, but Some Reprice Risk
9:10AM : Bond Markets Slightly Weaker in Domestic Session
Live Chat Featured Comments
John Tassios : "been a long while , good to see 3.5 again"
Matthew Graham : "3.5 is more important at these levels, but 4.0 is not unimportant."
Victor Burek : "from Goldman, growth will explode to 3.9% in Q2 (a full percentage point higher than their previous estimate)."
Victor Burek : "Last week, Q1 GDP growth was reported at a disappointing +0.1%. Based on data arriving since the initial estimate—including March factory orders, construction spending, and the trade balance—we now estimate Q1 growth at -0.6%. The good news is that Q1 was distorted by a number of one-off factors, including the negative weather shock, a large drag from net exports, and a sizable inventory correction, which should not be repeated in Q2."
Matthew Graham : "RTRS - TAYLOR CAPITAL GROUP INC TAYC.O - COLE TAYLOR BANK IS NO LONGER SEEKING TO SELL COLE TAYLOR MORTGAGE DIVISION AND INSTEAD WILL RETAIN IT TAYC.O"
Matthew Graham : "RTRS - NEWMAN RESIGNS AS PRESIDENT OF COLE TAYLOR MORTGAGE TAYC.O"
Ted Rood : "Lead article in the local St Louis paper today was about the 40% of homes in northern area of metro St Louis that are still underwater, by an average of 30% or so."
John Tassios : "also the other side of the coin Ted, 35% + of sales are cash buyers, the pie is shrinking"
Ted Rood : "think the article the other day said 41%, agreed on the micro pie."
Matthew Graham : "RTRS - U.S. MARCH WHOLESALE INVENTORIES RISE 1.1 PCT (CONSENSUS +0.5 PCT) VS FEB 0.7 PCT INCREASE (PREV +0.5 PCT) "
Hugh W. Page : "And leading the nations we have FL with 2/3rds Cash Deals and the other 1/3 is about half distressed stuff. Can't wait for a normal market one day ......"