We haven't heard much out of new Fed Vice Chair Richard Clarida since he accepted the position, but what we heard today was good.  Well, at least the bond market reaction was good.  His comments ended up setting the tone for the day.

So what did he say?  Nothing too complicated... Whereas Fed Pres Bostic was talking about a "neutral rate" of 2.5-3.5 yesterday, Clarida said we're close to a neutral range NOW.  That certainly seemed to be the biggest deal among his comments, but it was perhaps just as significant that he noted evidence of global economic slowing.  

Stocks and bonds both rallied from there on out.  The fact that the shorter end of the yield curve led the charge was especially telling (that's where we'd expect to see a bond market rally driven by shifts in Fed rate hike expectations).

The week ended with 10yr yields at a key technical level (3.075% at the 3pm close).  The next major technical is arguably 3.00%.  Fannie 4.0 MBS gained more than a quarter point to end in line with their best levels since early October.  


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
100-10 : +0-09
Treasuries
10 YR
3.0650 : -0.0530
Pricing as of 11/16/18 7:23PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:54AM  :  Clarida Comments Stoke Rally in Shorter-Term Rates

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Nathan Miller  :  "still been a great week regardless if we get any love today"
Matt Hodges  :  "esp.since our lenders were flat this morning, be nice to pick up a eighth at least"
Ted Rood  :  ""Volatile Market Conditions""
Nathan Miller  :  "the elusive Friday reprice"

Economic Calendar
Time Event Period Actual Forecast Prior
Friday, Nov 16
9:15 Capacity Utilization (%) Oct 78.4 78.2 78.1
9:15 Industrial Production (%) Oct +0.1 0.2 0.3