After yesterday's somewhat hopeful leveling-off in bond yields, today served to drive home the point that hope is futile and only bad things are going to happen forever and ever.  Well, at least that's how it felt today.  To be fair, yields are only closing a few bps higher and they've managed to hold very close to yesterday in terms of intraday highs.  In fact, today saw by far the smallest increase in intraday highs since the more serious selling began last week. 

In other words, there's still some room for hope.  Just don't get too attached.  From here on out, the presence of hope may have more to do with the incoming events.  These get more serious tomorrow with the first reading of Q1 GDP, a 5yr Treasury auction, and the biggest day of earnings reports so far this year (by a WIDE margin).

One other reason to question your inclination to be hopeful would be the incredible divergence seen in the stock/bond relationship today.  Granted, the so-called "stock lever" is frequently broken (i.e. falling stocks don't always help rates), but that is more likely to be the case when movements are relatively tame.  Today, on the other hand, stocks lost a ton of ground, and bonds didn't glean much--if any--benefit.  


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
98-27 : -0-05
Treasuries
10 YR
3.0014 : +0.0284
Pricing as of 4/24/18 4:55PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:51AM  :  ALERT ISSUED: Negative Reprice Risk Increasing, but...
9:05AM  :  Traders Lined Up To Sell at CME Open; Ceiling Looking Tenuous

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jason Anker  :  "so yea, not sure what to make of this, not feeling good about i"
Jason Anker  :  "sure but we should be 2.96 or better based on stocks"
John Paul Mulchay  :  "400-500 in the Dow now normal, right?"
Jason Anker  :  "and my day was taking a turn for the better till..."
Matthew Graham  :  "when stocks are selling off this aggressively and bonds are red, it doesn't feel super optimistic"