Fresh fears of trade wars pushed stocks and bond yields lower in the overnight session as the White House promised another wave of tariff announcements in the morning.  China retaliated by promising its own tariffs and markets slumped accordingly.  

By "accordingly," I mean they slumped as much as they have for any other trade war headline after the initial shock wore off--i.e. not too terribly much.  Case in point, stocks ended up bouncing back and nearly erasing all of the losses.  Bonds, on the other hand, got a bit of an extra boost from the overall momentum following 2 decent days of central bank news, as well as weaker economic updates out of Europe overnight.

10yr yields rallied all the way to 2.889 before bouncing up to 2.922% by the close (still 2.4bps lower on the day).  MBS underperformed, ultimately ending the day unchanged after having been green for the entirety.  


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 4.0
101-21 : +0-00
Treasuries
10 YR
2.9223 : -0.0237
Pricing as of 6/15/18 5:34PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:07PM  :  ALERT ISSUED: Negative Reprice Risk Increasing (Gradually)
11:54AM  :  ALERT ISSUED: Bonds Losing Some Ground
10:37AM  :  Bonds Rally on Europe and Tariff Updates

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Victor Burek  :  "so trade wars are no biggie"
Hugh W. Page  :  "Nice rally in stocks to end the day."
aaron meyer  :  "great stuff"
Matthew Graham  :  "I think he's just saying "we have to be careful how aggressive we are about hiking because the big deficit implies ongoing upward pressure on rates, regardless of Fed policy.""
Matthew Graham  :  "the kind of Fed comments we can come back to in 3-6 months as they get closer to mattering"
John Tassios  :  "sounds like some possible dissents at next FED meeting??"
Matthew Graham  :  "KAPLAN SAYS SIZE OF U.S. DEBT IS A KEY CONSIDERATION FOR FED ON RATE POLICY"
Matthew Graham  :  "this is great info!"
Matthew Graham  :  "KAPLAN SAYS YIELD CURVE IS A VERY CRITICAL FACTOR THAT HE AND OTHERS AT FED LOOK AT WHEN DECIDED ON RATE POLICY"
Matthew Graham  :  "KAPLAN SAYS HE WILL NOT KNOWINGLY ADVOCATE FOR RAISING RATES SO MUCH THAT YIELD CURVE INVERSES"
Matthew Graham  :  "RTRS - KAPLAN SAYS HIS BASE CASE IS FOR JUST ONE MORE RATE INCREASE THIS YEAR"