Not to be confused with the Red Sea, which is an actual place, the sea of red in the title is merely a reference to general bias toward weakness in bond markets for however long you care to look back in time (provided you don't look back more than 2 years).  Most pressing is the time frame between now and the end of August which has seen 10yr yields rise nearly 20bps.  That makes the past 3 weeks the worst selling spree since April, and introduces yet another attempt to break free from the gravitational pull of 10yr yields at 3%.

Bond bulls hope to see gravity kick in at the teal line in the following chart.  The manner in which it's been approached suggests we shouldn't take such support for granted, but neither can the technical significance of the 3% zone (3.015% specifically, over the past 3 months) be underestimated.  If the ceiling holds, we can use the momentum stochastic (at the bottom of the chart) to confirm a shift (green/teal lines following the path of the dotted white line).

2018-9-18 open

There are no significant market movers on tap today.  The only econ data is the 10am NAHB Housing Market Index (builder confidence, essentially).  Meanwhile, equities markets are expected to continue gyrating in response to various trade-related developments, following headlines regarding the most recent US/China tariff headlines.


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
101-02 : -0-02
Treasuries
10 YR
3.0125 : +0.0115
Pricing as of 9/18/18 9:12AMEST

Tomorrow's Economic Calendar
Time Event Period Forecast Prior
Tuesday, Sep 18
10:00 NAHB housing market indx Sep 66 67