For the most part, today was marked by the same sort of resilience seen on several recent occasions where bond yields have either held steady or fallen despite decent-to-strong economic data.  In today's case, it was a fairly healthy (depending whom you ask) improvement in durable goods (cap-ex +0.8 vs +0.1 forecast).  The caveat is that was January data (government shutdown month), and thus taken with a grain of salt.

Producer prices were weaker than expected, and because that was a February report, may have been worth some bond market resilience in the morning.  Either way, bonds were weaker to start the day, but didn't weaken further after the early data.  

Additional resilience came into play after the 1pm 30yr bond auction.  The auction was weaker than expected, but bonds didn't really sell-off.  Perhaps traders were waiting to see what would happen with the expected brexit-related votes at 3pm.  

While British politicians didn't surprise anyone with their decision to avoid a "no-deal" brexit, it was somewhat surprising to see that 3rd draft of a compromise deal has suddenly gained traction.  Additionally, the vote was closer to being in PM May's favor this time vs last time.  The implication is that Theresa May could get the requisite amount of votes by shifting to the 3rd compromise deal (referred to as "MV3").  When newswires suggested the same, British pounds sterling surged and pulled US bond yields higher late in the day.  


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
100-16 : -0-04
Treasuries
10 YR
2.6250 : +0.0200
Pricing as of 3/13/19 5:05PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:31PM  :  Bonds Hold Ground Despite Weaker 30yr Auction
8:41AM  :  Limited Reaction to Econ Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "9 month highs for GBP"
Matthew Graham  :  "Sterling going more vertical now. I think the sense is that this MV3 deal is the likely outcome"
Hugh W. Page  :  "Third times a charm I guess"
Matthew Graham  :  "and just now: MPS STARTING TO INDICATE THEY WILL VOTE FOR THE DEAL AT MV3- BUZZFEED REPORTER"
Oliver Orlicki  :  "Whats this surge at end of day here?"
Matthew Graham  :  "From the FT an hour ago: There is growing talk of Mrs May bringing forward a third so-called “meaningful vote” on the deal — known at Westminster as “MV3” — as she tries to wear down the resistance of the 75 Tory MPs and 10 Northern Irish unionist MPs who opposed the agreement on Tuesday."
Matthew Graham  :  "UK PARLIAMENT SPEAKER BERCOW SAYS MOTION ON DELAYING ARTICLE 50 SETS OUT GOVERNMENT WILL SEEK AN EXTENSION UNTIL JUNE 30"
Matthew Graham  :  "Here's a new newswire reiterating the March 29th deadline: UK PARLIAMENT SPEAKER BERCOW SAYS GOVT MOTION SAYS IF PARLIAMENT DOES NOT PASS A DEAL BY MARCH 29, HIGHLY LIKELY EUROPEAN COUNCIL WILL REQUIRE CLEAR PURPOSE FOR EXTENSION"
Victor Burek  :  "The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2019 is 0.4 percent on March 13, up from 0.2 percent on March 11."

Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, Mar 13
7:00 Mortgage Refinance Index w/e 1108.3 1110.9
7:00 MBA Purchase Index w/e 250.8 240.5
8:30 Producer Prices (%) Feb +0.1 0.2 -0.1
8:30 Core Producer Prices YY (%)* Feb +2.5 2.6 2.6
8:30 Durable goods (%)* Jan 0.4 -0.5 1.2
8:30 Nondefense ex-air (%)* Jan 0.8 0.1 -1.0
13:00 30-Yr Bond Auction (bl)* 16