June began with yields plateauing after rising from the Italy-inspired lows of late May.  10yr yields managed to avoid breaking above 3% until last week's much-anticipated Fed Day.  Even then, the Fed and the ECB ultimately gave way to the slow, steady rally that's persisted into the current week.

Until today, that rally was nice, but forgettable, as it merely got us back in line with the lowest levels of the narrow range seen so far this month.  Today's rally is arguably forgettable as well.  It hasn't marked a meaningful departure from the pace of the past few sessions.  In fact, the domestic trading hours were just as boring as yesterday's.  

The only difference today is that we started with a bit of a lead thanks to overnight trade war headlines.  As soon as Chinese equities markets closed for the day, US equities markets and bond yields began moving gradually higher (emphasis on "gradual").  This was never enough to erode the overnight gains, but it was enough to rob the day of any fanfare typically reserved for "the best day of the month."

Bottom line: same sideways grind, but with a head start thanks to overnight volatility.


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
101-25 : +0-03
Treasuries
10 YR
2.8894 : -0.0366
Pricing as of 6/19/18 4:15PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:59PM  :  ALERT ISSUED: Modest Increase in Negative Reprice Risk
9:32AM  :  Closer Look At Asia Driving Bond Gains

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ira Selwin  :  "Also, need to be careful with the increase in fees. Need to have a true Change of Circumstance for that - and needs to be something based on receiving new information within three days."
Dominick Cordone  :  "you can do a corrective CD. cannot LE and CD same day"
Clayton Sandy  :  "any way a LE and CD can go out the same day? Or any way a CD can disclose a program change and new fees? :)"

Economic Calendar
Time Event Period Actual Forecast Prior
Tuesday, Jun 19
8:30 Build permits: change mm (%)* May -4.6 -0.9
8:30 Housing starts number mm (ml)* May 1.350 1.310 1.287
8:30 Building permits: number (ml)* May 1.301 1.350 1.364
8:30 House starts mm: change (%) May 5.0 -3.7