There were a smattering of headlines and events available for bond markets to digest today.  If rates ended up moving higher, we could likely find a way to present those tidbits in such a way as to reconcile the bond market weakness.  As it happened, rates moved lower.

The bond market strength is fairly logical given the weak economic data, Brexit-related headlines, Treasury/corporate supply considerations, and potential month-end buying.  But the biggest factor in play is likely tomorrow's FOMC Announcement, and bond traders are expecting it to be decidedly friendly.

On the one hand, the last announcement wasn't nearly as friendly as expected.  Shortly thereafter, various Fed speakers came out and said the dovish things traders had hoped to hear/see at the announcement.  In other words, somewhere between the December Fed meeting and the subsequent Fed speeches, Fed members got more dovish.  Now, it only stands to reason that tomorrow's announcement would be accordingly dovish.

On the other hand, that same announcement from December serves as evidence that Fed is more than willing to say one thing in speeches and another in the official announcement.  Bonds better hope the Fed is as logical as the average bond trader this time around.


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
101-30 : +0-05
Treasuries
10 YR
2.7080 : -0.0360
Pricing as of 1/29/19 4:23PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:05PM  :  Bonds Benefiting From "Risk-Off" Sentiment, Among Other Things
9:31AM  :  Bonds in The Green Despite Gains in Stocks

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "British currency tanking after parliament rejected an amendment to delay brexit. Adding a "risk-off" bid for Treasuries"

Economic Calendar
Time Event Period Actual Forecast Prior
Tuesday, Jan 29
10:00 Consumer confidence * Jan 120.2 124.7 128.1
13:00 7-Yr Note Auction (bl)* 32