The bond market took a pass today as traders generally let supply considerations and positioning rule the day.  Supply considerations came courtesy of the 7yr Treasury auction (also the last of the week's auctions).  The auction itself had fairly average stats, but primary dealers (who are forced to submit bids) were left holding a bigger piece of the bag than normal.  Thus, they had more bonds to sell (or opportunistic traders assumed they'd have more bonds to sell in the near future and thus tried to get ahead of the trade by selling).

Either way, the 1pm time frame (when the auction happened) saw a bit of additional selling pressure.  This was largely confined to Treasuries, however, as MBS were able to maintain a mostly sideways grind on the day.

Incidentally, the stronger Durable Goods data didn't have much of an impact.  Bonds weakened slightly at first, but the 9:30am NYSE open brought a glut of asset allocation trades as investors sold stocks and bought bonds.  That pushed rates to the best levels of the day.  From there they moved higher in anticipation of the Treasury auction, and then, as mentioned, a bit higher after the auction.

Bottom line: this market looks like it's focused on future economic releases.  At the very least, we're waiting for tomorrow morning's GDP, but in all likelihood, it's the entirety of next week's slate of events that will prompt bigger changes.


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
100-27 : -0-02
Treasuries
10 YR
2.5320 : +0.0100
Pricing as of 4/25/19 5:04PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
8:42AM  :  Bonds Losing Ground After Stronger Durable Goods Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ted Rood  :  "I like it when they get more specific, "Seller to pay $3000 in costs in lieu of mitigating mold and electrical repairs identified in home inspection.""
Tony Garcia  :  "On a conventional deal (appraisal as is). Buyer and sellers negotiate repairs. At the walk through one of the items wasn’t done. They agree on an additional $500 credit (which the addendum states in lieu of repairs). Do you guys run into issues?"
Timothy Baron  :  "If they do, does the borrower have to attend a 90 minute timeshare presentation?"
J H  :  "CM, does Wyndham offer a 3% down conventional purchase product?"

Economic Calendar
Time Event Period Actual Forecast Prior
Thursday, Apr 25
8:30 Nondefense ex-air (%)* Mar 1.3 0.1 -0.1
8:30 Durable goods (%)* Mar 2.7 0.8 -1.6
8:30 Continued jobless claims (ml) w/e 1.655 1.699 1.653
8:30 Jobless Claims (k) w/e 230 200 192
13:00 7-Yr Note Auction (bl)* 32
Friday, Apr 26
8:30 GDP Advance (%)* Q1 2.0 2.2
10:00 Consumer Inflation Expectations (1yr) (%) Apr 2.4
10:00 Consumer Sentiment (ip) Apr 97.0 96.9
10:00 Consumer Inflation Expectations (5yr) (%) Apr 2.3