A break below a big psychological technical level in bond yields can be a great thing to behold, but it can also be a signal that it's time for bonds to bounce.  Bonds have now gone 7 weeks (barring catastrophe tomorrow) without losing ground.  The last time that happened was the summer of 2012 (which was the golden age of low, stable interest rates at home and abroad, and everyone knew it).

I'm not saying that the party is over--not by any means--just that we need to be on the lookout for an intermission.  Either way, based on the Fed's verbiage yesterday, there's a lot riding on July's first week of economic data.  It's hard to imagine a profound move in either direction until we know where that data falls.  It's easy to imagine bonds might want to do just a bit more to catch their breath if there's a chance they'll be asked to rally deeper in 1% territory in 2 weeks.

10's were as low as 1.973% on two occasions today.  Each time they bounced decisively.  By the end of the day, yields were back at unchanged levels day-over-day.  MBS were mostly in the same boat, but Fannie 3.0 coupons managed to retain 2 ticks (0.06) of strength vs yesterday's latest levels.


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
100-28 : +0-02
Treasuries
10 YR
2.0230 : -0.0040
Pricing as of 6/20/19 6:40PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:26PM  :  ALERT ISSUED: Negative Reprices Becoming More Likely
4:07PM  :  ALERT ISSUED: Negative Reprice Risk Increasing For Some Lenders

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Edgar Winter Is Coming  :  "Thanks MG....just saved my clients a ton of money; and once again you've made them (and me) very happy!"
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Economic Calendar
Time Event Period Actual Forecast Prior
Thursday, Jun 20
8:30 Philly Fed Business Index * Jun 0.3 11.0 16.6
8:30 Jobless Claims (k) w/e 216 220 222
Friday, Jun 21
10:00 Existing home sales (ml)* May 5.25 5.19
10:00 Exist. home sales % chg (%)* May 1.2 -0.4