Bad news for bonds today as Trump shelved the threat of tariffs on Mexico that helped fuel the sharpest leg of the recent rally 2 weeks ago.  Perhaps more significant than this particular tariff news is the fact that Trump is showing markets he's willing to make progress much sooner than the average conspiracy theory suggests.

What theories are those?  They're actually not too conspiratorial.  They include things like forcing the Fed's hand in rate cuts due to concern over global growth.  More popular still is the notion that Trump's reelection efforts would benefit from the economy decelerating now only to surge into 2020's election.  While those options aren't exactly precluded by today's news, they are somewhat easier to question.

Most of the bond market weakness was in place by the opening bell with 10yr yields up near the 2.147% technical level.  Fannie 3.0 MBS lost 3/8ths of a point by the end of the day.  Tomorrow's momentum will be important in determining whether markets are reading this as a one-off mini-correction or the start of a longer-lasting bounce.


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 3.0
100-10 : -0-12
Treasuries
10 YR
2.1520 : +0.0680
Pricing as of 6/10/19 5:00PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:01PM  :  ALERT ISSUED: Negative Reprice Risk Increasing
10:08AM  :  ALERT ISSUED: Negative Reprice Risk For a Few Lenders

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Kirk Rasmussen  :  "Nothing from Freddie yet"
Hugh W. Page  :  "Correct"
John McClellan  :  "no "no income" areas? I take it"
Hugh W. Page  :  "80% of AMI only now."
Dominick Cordone  :  "income limits"
John McClellan  :  "what did Fannie change home ready/."
Scott Valins  :  "any mention of Freddie changing Home Possible the way Fannie did?"