The bond market was already in the process of holding ground in the overnight session and domestic trading hours only added to the resilience.  It may not have seemed overly obvious at first--especially when the day's biggest victory occurred when yields were in the process of holding sideways in WEAKER territory.

What's up with big victories coinciding with weaker trading levels?  A valid question!  Typically , bond market weakness is--well... weak.  But timing is everything.  Today's weakness came in response to a stronger reading on an important piece of economic data (ISM non-manufacturing).  Moreover, the weakness was brief. 

In fact, in the context of the first few hours of the morning, yields were arguably simply holding sideways at slightly higher levels.  Additionally, the post-ISM weakness topped out right at the 2.75% technical level we've been tracking in the hopes of seeing a short-term ceiling take shape between now and the last part of March.

Bond traders seemed to be well aware of the sneaky positive cues as the afternoon gave way to more visible gains.  Although those improvements weren't huge in the bigger picture, they did get rates back into positive territory on the day, resulting in widespread positive reprices.


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 3.5
100-02 : +0-04
Treasuries
10 YR
2.7190 : -0.0030
Pricing as of 3/5/19 7:26PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:15PM  :  Back in Positive Territory, But Rally Looks Bigger Up Close
10:06AM  :  Bonds Selling-Off After Stronger Data

Economic Calendar
Time Event Period Actual Forecast Prior
Tuesday, Mar 05
10:00 ISM N-Mfg Bus Act * Feb 64.7 59.9 59.7
10:00 ISM N-Mfg PMI * Feb 59.7 57.3 56.7
10:00 New home sales chg mm (%)* Dec +3.7 -8.7 16.9
10:00 New home sales-units mm (ml)* Dec 0.621 0.600 0.657
Wednesday, Mar 06
7:00 MBA Purchase Index w/e 247.0
7:00 Mortgage Refinance Index w/e 1133.8
8:15 ADP National Employment (k)* Feb 189 213