Bonds have been threatening to end their pleasantly surprising stint of gains over the past few weeks on each of the past 4 business days.  Yesterday's weakness was technically enough to start packing up the party supplies, but an isolated day of trend breakage is always more meaningful when it brings a friend.

Today was the friend--only in our case, it's the friend of an enemy.  In other words, today's moderate bond market weakness confirms the breakout of the stronger trend that had been intact during the previous 2 weeks.  

The losses can't be traced to any singular event although we can see that most of the weakness occurred during European hours overnight.  News of a potential Brexit re-vote added to the mid-day weakness and actually prompted bond yields to hit their highs of the day.  But as details emerged, the truth was a bit less dramatic than the initial headlines suggested.  Bonds calmed back down and managed to end the day only about 1bp higher in 10yr yields and 1 tick (0.03) lower in Fannie 3.5 MBS prices.


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
101-02 : -0-01
Treasuries
10 YR
2.4280 : +0.0140
Pricing as of 5/21/19 5:09PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:01AM  :  ALERT ISSUED: Negative Reprice Risk Increasing (Brexit News Making Waves)
10:44AM  :  Bonds Attempt to Rally, But Staying Red For Now

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jeff Schlesinger  :  "@Ted Everyone in CA is a $1mm producer. That takes 1 deal."
Ted Rood  :  "one of those amazing "Million Dollar Producers"?"
Matthew Graham  :  "i mean technically it doesn't have to appraise for the full sales price. He just needs a 100 LTV loan in your scenario"
Jeff Schlesinger  :  "I thought I would share this with the group... in case anyone needed a laugh today. This just received from a Licensed CA Realtor I have worked with in the past: "I have a buyer who is using a credit union to buy a property, his lender is saying that the home he is buying has to appraise for the full sales price and not the loan amount. I thought the appraisal had to be for the loan amount, am I confused?""

Economic Calendar
Time Event Period Actual Forecast Prior
Tuesday, May 21
10:00 Existing home sales (ml)* Apr 5.19 5.35 5.21
10:00 Exist. home sales % chg (%)* Apr -0.4 2.7 -4.9
Wednesday, May 22
7:00 Mortgage Refinance Index w/e 1232.6
7:00 MBA Purchase Index w/e 268.5
14:00 FOMC Minutes *