What began as a rather unassuming summertime Wednesday quickly turned in to one of the biggest rally days in weeks for bonds.  10yr yields moved more than 6bps lower to end the day well under the important 2.06% technical level and Fannie 3.0 MBS gained a quarter of a point.

Although there was economic data in play this morning (slightly weaker construction numbers), it certainly wasn't the driver of the move.  In fact, looking beyond the headline actually showed improvements in single-family construction numbers.  More importantly, bonds really didn't do much until after 10am.

The same time frame corresponds to fairly brisk losses in the stock market.  Bonds and stocks don't always follow each other.  Many times, they move in opposite directions--especially when they're trading Fed accommodation probabilities.  But today marked one of the biggest days of stock selling since late May (when Trump announced Mexico tariffs).  It was enough to invigorate any gains to which bonds were already predisposed.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
100-24 : +0-09
10 YR
2.0430 : -0.0770
Pricing as of 7/17/19 5:25PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:03AM  :  At Best Levels as Stocks Slide

Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, Jul 17
7:00 MBA Purchase Index w/e 265.1 275.6
7:00 Mortgage Refinance Index w/e 1827.3 1799.7
8:30 House starts mm: change (%) Jun -0.9 -0.9
8:30 Housing starts number mm (ml)* Jun 1.253 1.261 1.269
8:30 Building permits: number (ml)* Jun 1.220 1.300 1.299
8:30 Build permits: change mm (%)* Jun -6.1 0.7
Thursday, Jul 18
8:30 Philly Fed Business Index * Jul 5.0 0.3
8:30 Jobless Claims (k) w/e 216 209