Today was a throw-away day for the bond market.  Yields matched their narrowest trading range of the week and ended the day at their most 'unchanged' levels of the week (i.e. closest to the previous day's close).  In addition, Friday's close was only 2bps away from last Friday's close. 

Translation: bonds did a GREAT job of QUICKLY getting into position for upcoming risks after LAST WEEK'S Brexit news.  You'd be forgiven if you forgot about this one already, but I'm referring to the meeting that took place between Boris Johnson and the Northern Irish PM Varadkar.  That meeting introduced the prospect of a last minute Brexit deal.  Bonds jumped accordingly (perhaps with some help from the trade deal announcement the following day) and the waiting game began.

As of tomorrow, the waiting game--or at least a major milestone thereof--is over.  We'll find out if British parliament can manage to sign off on the new Brexit deal (the average news story this week suggests they won't, but we've learned not to blindly trust such stories when it comes to how UK politics will go).  More likely, we'll find out that the UK will request a 2 month extension on the existing 10/31/19 Brexit deadline.  Happy New Year?  


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
101-05 : +0-00
Treasuries
10 YR
1.7540 : -0.0010
Pricing as of 10/18/19 6:03PMEST

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Peter Lassig II  :  "In all seriousness, I know I've written variants of this before, but I've become SUPER stingy the older I get. Yet, MBS Live is a priceless service for our line of work. My one and only LO often asks me how the market is doing. I remember those days of living in the dark."
Ted Rood  :  "Looks like a pretty mundane week, which likely means there will be huge, unanticipated bombshells"
Matthew Graham  :  "what do you mean by bond resistance, DR? As in, "stocks are getting killed, but bonds aren't benefiting as much as I'd expect. Is that because bonds are waiting to see if Brexit is not bond-friendly?" If that's your question, then yes, that's as good a take as any."

Economic Calendar
Time Event Period Actual Forecast Prior
Friday, Oct 18
10:00 Leading index chg mm (%) Sep -0.1 0.1 -0.3