MBS did a great job of fending off an onslaught of Treasury weakness today.  MBS outperformance is a relatively foreign concept of late, but we do tend to see it if Treasuries lose ground quickly enough.  Today, however, it was possible even without a significant slide in bond prices.

The reason for the exceptional behavior was a very Treasury-specific set of concerns driving selling pressure.  These include the week's Treasury auction cycle (not typically enough for underperformance in and of itself) and more importantly, a big glut of corporate bond issuance.  

The first corporate-bond-related selling spree happened early in the 9am hour, but was unwound by 11am.  After that, more corporate deals continued to pound Treasuries with MBS holding flat until after 4pm.  At that point, the entire bond complex had weakened enough that MBS were eventually forced to give up a few ticks, but even then, it was only 2/32nds versus the 8/32nds lost in 10yr Notes.


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
100-25 : -0-02
Treasuries
10 YR
2.0780 : +0.0350
Pricing as of 7/23/19 6:09PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:46PM  :  ALERT ISSUED: Negative Reprice Risk Increasing For a Few Lenders
9:49AM  :  ALERT ISSUED: Bonds Slipping to Weakest Levels

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Lawrence Oliver  :  "The Title company is correct. All title companies will require the interspousal deed in California in that circumstance. Your problem is that you are trying to apply the rules of logic to California law."

Economic Calendar
Time Event Period Actual Forecast Prior
Tuesday, Jul 23
9:00 Monthly Home Price yy (%) May +5.0 5.2
9:00 Monthly Home Price mm (%) May +0.1 0.4
10:00 Existing home sales (ml)* Jun 5.27 5.33 5.34
10:00 Exist. home sales % chg (%)* Jun -1.7 -0.2 2.5
13:00 2-Yr Note Auction (bl) 40