Today brought rather pervasive pressure on longer-term rates and mortgages.  It wasn't a significant amount of selling, but it was fairly steady throughout the day--ultimately bringing us back into the red after starting the day in the green.

Credit Europe for the green start.  To a smaller extent, stock losses may have played a role.  As domestic traders got started for the day, everything reversed course.  Stocks gained.  Bonds lost.  Economic data was either uneventful or overlooked.

The only noticeable theme in bond markets was a "steepening" bias.  In other words, traders were willing to sell 10yr Treasuries much more readily than 2yr Treasuries.  Indeed, 2s stayed green (and never really sold off) while 10s were up nearly 1bp by the close after beginning the day nearly 3bps lower.

In the bigger picture, that leaves us right in line with post-Fed levels, and without any post-Fed follow through.  This could be the markets way of saying it would need to see more evidence for a rally from next week's big-ticket economic reports, including Friday's jobs data (and the Average Hourly Earnings component that hurt rates so badly at the beginning of September).


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
100-30 : -0-01
Treasuries
10 YR
3.0630 : +0.0080
Pricing as of 9/28/18 4:59PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:11PM  :  ALERT ISSUED: New Lows For MBS; Outside Chance of a Reprice
11:04AM  :  At Weakest Levels (Back to Unchanged)
8:41AM  :  Today's Big Bullet Dodged as Core Inflation Stays in Check

Economic Calendar
Time Event Period Actual Forecast Prior
Friday, Sep 28
8:30 Personal Income (%)* Aug +0.3 0.4 0.3
8:30 Consumer Spending (Consumption) (%) Aug +0.3 0.3 0.4
8:30 Core PCE (y/y) (%)* Aug +2.0 2.0 2.0
9:45 Chicago PMI * Sep 60.4 62.5 63.6
10:00 U Mich 5-Yr Inf Final (%) Sep 2.5 2.4
10:00 U Mich Sentiment Final (ip) Sep 100.1 100.8 100.8
10:00 U Mich 1Yr Inf Final (%) Sep 2.7 2.8