Stop me if you've heard this one before: bonds have been trading in a mostly sideways, consolidative range ahead of what should prove to be key events that motivate a break outside of said range.  

Sure, it may be a common stance for the bond market, but that doesn't make it any less relevant.  In fact, it may have been even more relevant than trade war headlines today.  If you ask the stock market, trade war headlines were the key market movers and  the reason equities were able to finish moderate stronger on the day.  By that same rationale, bonds should have finished weaker (positive trade war updates = good for stocks and bad for bonds).

While bonds did indeed respond to the headlines, they also spent a lot of time shrugging them off and doing their own thing.  What thing is that?  Simply put, yields trudged back toward the lower end of the prevailing consolidation range in a calm, linear fashion.  The motivation for such a thing?  Easy one!  They'd just hit the upper boundary of that range early in the overnight session, so why not head back to the lower boundary after that?

It continues to the case that next week's economic data is the best bet for a sustained breakout from this consolidation range, but we can't rule out a more impassioned reaction to trade-related headlines if the right news comes out of the G20 summit tomorrow.


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 : +0-07
Treasuries
10 YR
2.0140 : -0.0350
Pricing as of 6/27/19 5:32PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:23AM  :  At Best Levels Now After Mostly Uneventful Morning

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ira Selwin  :  "All the Flagstar memo (and Freddie) states is that For Accept Mortgages Loan Product Advisor has evaluated the Borrower's credit reputation, and determined that the credit reputation is acceptable, so nothing additional is needed. The Freddie memo is in regards to a manual u/w treating ch 12 the same as ch 13."
Andy Pada, Jr.  :  "that is from 6/5/19"

Economic Calendar
Time Event Period Actual Forecast Prior
Thursday, Jun 27
8:30 GDP Final (%) Q1 3.1 3.1 3.1
8:30 Jobless Claims (k) w/e 227 220 216
10:00 Pending Sales Index May 105.4 104.3
10:00 Pending Home Sales (%) May +1.1 1.0 -1.5
13:00 7-Yr Note Auction (bl)* 32