Last we checked, it was going to be October before Brexit had its next hard deadline.  So it was quite the back burner sort of market mover this week--especially in light of all the recent trade-related drama and other domestic political sideshows.  But then this happened

US Treasuries love to react to "stuff" that happens in London.  Old habits die hard, I suppose.  Then again, London still is a major international financial center and Brexit would certainly affect trade in Europe (and thus, economic growth potential).  A Theresa May ouster makes a hard Brexit more likely, and thus all the other bond friendly stuff just mentioned.

Of course the ouster hasn't happened yet, nor has the hard Brexit, so markets merely moved into position for new possibilities today.  That meant some moderate gains for Treasuries, which generally followed EU/UK bonds in lock step and then went flat on the day when the former closed.  Unexpected, yet simple and logical.  

It's still a 3.5 day week before a major holiday weekend, so we still might not get a great idea of how markets will ultimately run with this one until the middle of next week.  In the meantime, considering we were looking at burgeoning selling pressure, we'll take what we can get!


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
101-07 : +0-05
Treasuries
10 YR
2.3800 : -0.0460
Pricing as of 5/22/19 5:10PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:23PM  :  What's In The Fed Minutes?
10:14AM  :  Brexit News Pulling Yields Lower

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "and recall that was before trade war week"
Matthew Graham  :  "A NUMBER OF FED POLICYMAKERS SAID SOME RISKS TO ECONOMIC OUTLOOK HAVE MODERATED, INCLUDING FOR GLOBAL ECONOMY, BREXIT AND TRADE TALKS - FED MINUTES"
Matthew Graham  :  "guess they haven't tried to rent or buy a home recently"
Matthew Graham  :  "MANY FED POLICYMAKERS SAID RECENT DIP IN PCE INFLATION LIKELY TO BE TRANSITORY"
Matthew Graham  :  "A NUMBER OF FED POLICYMAKERS SAID A PORTFOLIO WITH MORE CAPACITY FOR A MATURITY EXTENSION PROGRAM WAS MORE DESIRABLE THAN A 'PROPORTIONAL' PORTFOLIO WITH MATURITIES SIMILAR TO THOSE OF OUTSTANDING TREASURIES"
Matthew Graham  :  "OTHER FED POLICYMAKERS EXPRESSED CONCERN THAT SHORTER MATURITY PORTFOLIO COULD KEEP FED FUNDS RATE LOWER OVER LONG TERM"
Matthew Graham  :  "MANY FED POLICYMAKERS SAID HOLDING SHORTER DURATION MATURITIES ON FED'S BALANCE SHEET COULD HELP FUTURE MATURITY EXTENSION PROGRAMS"
Matthew Graham  :  "A FEW FED POLICYMAKERS SAID MONETARY POLICY MIGHT NEED TO BE TIGHTENED IF ECONOMY EVOLVES AS EXPECTED"
Matthew Graham  :  "FED POLICYMAKERS GENERALLY AGREED A PATIENT APPROACH TO INTEREST RATE POLICY CHANGES WAS WARRANTED"
Matthew Graham  :  "FED POLICYMAKERS NOTED PATIENT APPROACH FOR RATE POLICY WOULD LIKELY BE APPROPRIATE FOR SOME TIME EVEN IF GLOBAL CONDITIONS KEEP IMPROVING - MINUTES TO APRIL 30-MAY 1 MEETING"
Matthew Graham  :  "RTRS - FED'S KAPLAN SAYS U.S. IS 'FLIRTING' WITH YIELD CURVE INVERSION, POINTING TO EXPECTATIONS FOR SLUGGISH GROWTH AHEAD"

Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, May 22
7:00 Mortgage Refinance Index w/e 1334.9 1232.6
7:00 MBA Purchase Index w/e 263.0 268.5
14:00 FOMC Minutes *
Thursday, May 23
8:30 Jobless Claims (k) w/e 215 212
10:00 New home sales chg mm (%)* Apr -2.8 4.5
10:00 New home sales-units mm (ml)* Apr 0.675 0.692