Bonds began the day in roughly unchanged territory.  On the one hand, that was impressive considering the lack of substance underlying yesterday's rally.  On the other hand, that lack of substance meant we were at risk of a bigger reaction to the Retail Sales data.

Retail Sales came out stronger than expected and bonds quickly retreated back in line with yesterday's weakest levels.  Notably, however, bonds never broke through to any weaker territory.  In fact, today's ceiling (2.143% in terms of 10yr yields) was slightly lower than the 2.15% ceiling from the past 3 consecutive sessions).  

The rest of the morning's economic data was a non-event, clearing the way for an asset allocation trade to benefit bonds in the afternoon (selling stocks and buying bonds).  Treasuries ended up clawing back more than half of the morning weakness and MBS made it almost all the way back to 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
100-15 : -0-02
Treasuries
10 YR
2.1060 : +0.0140
Pricing as of 7/16/19 6:25PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
8:44AM  :  Some Weakness After Retail Sales Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Caroline Roy  :  "Showing clients that you are engaged in making the best choices for them helps separate you from the call centers of the lending world."
Timothy Baron  :  "I LOVE showing my MBSLive screen to clients."
Matthew Graham  :  "RTRS - EVANS REPEATS FEELS 50 BASIS POINT CUT IS NEEDED TO LIFT INFLATION"

Economic Calendar
Time Event Period Actual Forecast Prior
Tuesday, Jul 16
8:30 Retail Sales (%)* Jun 0.4 0.1 0.5
8:30 Import prices mm (%)* Jun -0.9 -0.7 -0.3
8:30 Export prices mm (%)* Jun -0.7 -0.2 -0.2
9:15 Industrial Production (%) Jun 0.0 0.1 0.4
10:00 NAHB housing market indx Jul 65 64 64
10:00 Business Inventories (% ) May +0.3 0.3 0.5