All things being equal, today was a fine day for the bond market.  Sure, 10yr yields ended the day 2bps higher than yesterday's latest levels, but in the recent context, they're better thought of as "sideways at the best levels in a long time."  

When bonds have improved as rapidly as they have over the past week, traders are keenly on the lookout for a big, corrective bounce.  But we haven't seen one yet.  We may not see one unless some fundamental motivation comes along in the form of exceptionally strong economic data at home or abroad. 

In today's case, exceptionally weak economic data provided the fundamental motivation bonds needed to hold on to the strong territory.  It came in the form of Consumer Confidence (124.1 vs 132.0) at 10am ET.  From that point on, rates never showed any real interest in re-testing the highs of the day.  A strong 2yr Treasury auction definitely didn't hurt either, although tomorrow's 5yr auction is more relevant for MBS and mortgage rates. 


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
101-14 : +0-00
Treasuries
10 YR
2.4250 : +0.0070
Pricing as of 3/26/19 5:50PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:09AM  :  Slightly Weaker Overnight and Little-Changed After Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Hugh W. Page  :  "You have to admit it's pretty remarkable that 11 yrs post crisis the 10 Yr German Bund is back in negative territory. I think I heard a statistic on Bloomberg the other day that there is now nearly $10 Trillion in negative yielding bonds globally. Amazing"
John Tassios  :  "undershooting of infl goal is new normal due to these post 2008 shifts: Demand ( muted ), Demographics ( aging population ), Deficits , Dislocations ( of capital and incomes ) @2cents"
John Tassios  :  "Fed's credibility is not hurt by undershooting infl goal per our new normal econ world post 2008. but, FED's credibility IS hurt when it's chairman does a complete 180 policy shift between meetings and FED's messaging is unsteady.@2cents"
Matthew Graham  :  "RTRS - FED'S CREDIBILITY IS ONE OF ITS MOST IMPORTANT ASSETS, DALY SAYS"
Matthew Graham  :  "RTRS - FED'S DALY SAYS FED'S CREDIBILITY DEPENDS ON DELIVERING 2-PCT INFLATION ON A SUSTAINED BASIS"
Matthew Graham  :  "RTRS - FED'S DALY SAYS NEED TO BE VIGILANT ABOUT FALLING INFLATION EXPECTATIONS"
Matthew Graham  :  "RTRS - FED'S DALY SAYS INFLATION IS MUTED IN PART BECAUSE OF CHANGES IN LABOR MARKET"
Matthew Graham  :  "RTRS - FED'S DALY SAYS FED HAS NOT SUSTAINABLY MET 2-PCT INFLATION GOAL"

Economic Calendar
Time Event Period Actual Forecast Prior
Tuesday, Mar 26
8:30 Build permits: change mm (%)* Feb -1.6 -0.7
8:30 Housing starts number mm (ml)* Feb 1.162 1.213 1.230
8:30 House starts mm: change (%) Feb -8.7 18.6
8:30 Building permits: number (ml)* Feb 1.296 1.300 1.317
9:00 CaseShiller 20 yy (% ) Jan +3.6 4.0 4.2
9:00 Monthly Home Price yy (%) Jan 5.6 5.6
10:00 Consumer confidence * Mar 124.1 132.0 131.4
Wednesday, Mar 27
7:00 MBA Purchase Index w/e 251.5
7:00 Mortgage Refinance Index w/e 1146.8
13:00 5-Yr Note Auction (bl)* 41