It may or may not actually be shocking to learn that White House economic advisor Cohn has resigned, but it certainly wasn't a given.  Cohn had previously indicated that he would resign if Trump wouldn't back down on the recently announced Tariffs, however, so we knew it was a possibility.

Cohn's resignation hit right after the close of business and early overnight trading suggests the reaction could be fairly big.  10yr yields are currently back down to 2.84% after closing closer to 2.89%.  Take early overnight gains with a grain of salt though.  We've seen them completely evaporate even after moves this big.  Nonetheless, meet me here early tomorrow morning so we can count however many hatched chickens show up.

Before the Cohn shocker, there was the CVS bond deal.  Admittedly, if you're not an MBS Live member and not seeing the updates, alerts, and huddles, it would be harder to appreciate just what a big deal this has been for bonds over the past few days.  In a nutshell, it's single-handedly responsible for the reversal toward higher rates last week and for most of the intraday volatility today.


MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.5
99-19 : -0-01
Treasuries
10 YR
2.8443 : -0.0327
Pricing as of 3/6/18 6:58PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:07PM  :  ALERT ISSUED: Slight Increase in Reprice Risk; Bonds Lose Ground on Tariff Headline
9:59AM  :  CVS Details Helping; Why MBS Live is So Cool

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "yeah, pretty big reaction"
John Tassios  :  "USD is tanking"
Matthew Graham  :  "Yen/$ and early Treasury futures trading suggests it's a risk-off move. Futures would put yields below today's lows, around 2.84% But we're in an illiquid knee-jerk period, so we'll see."
Edgar  :  "MG: Do you think we'll see a market reaction tomorrow to Cohn's resignation?"
Edgar  :  "Cohn resigning according to the NYT: https://www.nytimes.com/2018/03/06/us/politics/gary-cohn-resigns.html"

Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, Mar 07
7:00 Mortgage Market Index w/e 382.9
8:15 ADP National Employment (k)* Feb 195 234
8:30 International trade mm $ (bl) Jan -53.1