• 10yr yields ended the week right where they began it (1.90%)
  • Same can't be said of MBS, Fannie 3.0s lost ground on the week
  • Durable Goods data helped early, but stock/oil bounce dominated
  • Bonds sold off into afternoon and most lenders repriced

Bond markets ended the day in just slightly weaker territory than it began.  The overnight session was good, with Treasuries holding ground and rallying in concert with weakness in stocks and oil.  

Durable Goods data added to the rally.  It wasn't that the headline was too troubling (indeed, -2.8 vs -2.9 forecast would seem to argue against a further rally).  Instead, it was the 'nondefense, excluding aircraft' component (aka "CapEx") that missed estimates handily and helped the bond rally continue.  

Meanwhile, stocks and oil continued lower until the 9:30am NYSE open.  Risk assets bounced and bond markets took that as their cue to get out of dodge for the day.  Traders didn't want to be stuck holding the bag on an early close day before a 3-day weekend, so the pace of the selling was fairly steep, all other things being equal.  The net effect was a day that felt worse that it actually was due to the ground covered between the strongest and weakest levels.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
101-23 : +0-00
10 YR
1.9000 : +0.0250
Pricing as of 3/24/16 5:09PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:09PM  :  ALERT ISSUED: Negative Reprices Becoming More Possible
10:54AM  :  ALERT ISSUED: Reprice Risk Considerations as Bonds Bounce
9:15AM  :  Bonds at Best Levels After Tepid Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ted Rood  :  "Thanks for a great newsletter, MG. Got a refi from a former client 5 minutes after he read it!"
Nathan Miller  :  "at least the early close halted the selling"
Ted Rood  :  "stop buying MBS first, ask questions later."
Gus Floropoulos  :  "early close, no trading tom....precautionary for sure"
Damon Embler  :  "Ying & Yang from yesterday when it comes to Pricing ...WOW"