Yesterday saw the bond market sell off in a fairly frustrating way.  Granted, there was some justification for the initial overnight weakness courtesy of an approved Brexit extension, but it was actually the DOMESTIC bond market that sold off more aggressively than Europe.  But don't take my word for it:

20191029 open3

What's up with the October 25th spike in stocks and bonds?  The only plausible explanation is the trade deal progress announced just before the stock market opened on Friday.  Bottom line here: just when we let Brexit headlines take the spotlight, trade war headlines jumped in to let us know what really matters to the big-picture "asset allocation trade" (stock prices and bond yields moving together) in the US.

Apart from remaining on guard for additional trade headlines, there's little to do apart from monitor the trends until we get to the week's meatier data tomorrow.  We may have some green on the screen this morning, but the broader trends remain unfriendly.  In other words, don't let today's green fool you.  It's just a small, friendly correction inside a larger, unfriendly trend (represented by the white lines below).

20191029 open


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
100-31 : +0-02
Treasuries
10 YR
1.8330 : -0.0200
Pricing as of 10/29/19 9:25AMEST

Tomorrow's Economic Calendar
Time Event Period Forecast Prior
Tuesday, Oct 29
9:00 CaseShiller 20 yy (% ) Aug 2.1 2.0
9:00 CaseShiller 20 mm nsa (%) Aug 0.3 0.1
9:00 CaseShiller 20 mm SA (%) Aug 0.0 0.0
10:00 Pending Sales Index Sep 107.3
10:00 Consumer confidence * Oct 128.0 125.1
10:00 Pending Home Sales (%) Sep 0.9 1.6