Have you ever seen someone randomly do something fairly awful/hurtful/aggressive, offer no explanation or apology, and then just leave the scene?  That was essentially what bond markets did today.  Friday's already unpleasant weakness was forcibly extended, bringing yields to the highest levels in more than 4 years during the overnight session (a feat that was nearly repeated during domestic hours).

There were no new developments in the bond market world to justify such a turn of events.  Still, it shouldn't come as much of a surprise if you've been reading this commentary.  After all, last week was all about the "defeat of the friendly Springtime consolidation in rates."  That defeat paved the way for the bigger-picture, longer-term selling trend to get back underway. 

Bottom line, that negative trend is its own justification for existence.  If there's a positive, it's that domestic market participants seemed to perk up at the prospect of buying 10yr notes near 3% yields.  If there's a negative, it's that 2.96% was equally exciting to sellers, who had no intention of letting yields dip any lower.  We can hope those buyers up at 3% remain interested through the week's big Treasury auction day on Wednesday and the first reading of Q1 GDP.  Even so, fans of low rates should be feeling defensive until further notice.


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
99-00 : -0-04
Treasuries
10 YR
2.9770 : +0.0260
Pricing as of 4/23/18 5:15PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:34AM  :  ALERT ISSUED: Near Reprice Risk Threshold, Struggling With Resistance

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Michael Baker  :  "It's in the news stream JT, headline: "'Bond King' Gundlach says closing above 3% on 10-year yield will spark even higher rates""
John Tassios  :  "what did he say? Bond bear mkt?"
Dominick Cordone  :  "if I'm 6 yrs in, I obv say 12, so she was really 3...."
Caroline Roy  :  "DC, had a realtor extolling her vast knowledge base from the "past six years in this industry". insert eye roll."
Ted Rood  :  "Even if you preface it with "I'm going to be honest with you"?"
Dominick Cordone  :  "vent alert----if you have to tell someone how long you've been in the business for (any business) your next comment loses all credibility"