At the start of the overnight session (yesterday night), 10yr yields were up around 1.58%.  By 1030am ET, they'd already fallen to 1.525%.  Up until that time, we hadn't heard so much as a peep out of global equities markets even though they would go on to get credit for the day's big move in bonds.

If you're picking up what I'm layin' down here, the point is that bonds were already most of the way to their destination well before stocks had a chance to exert influence.  Nonetheless, the stock swoon in the 11am hour managed to impress.  The S&P lost more than 40 points in short order and bond yields were compelled to plumb new lows for the day, even if those lows were only 2bps below the morning's best levels.  

Although coronavirus headlines got a lot of attention as the culprit behind the market movement, we can't really rule out a simple late-day sell-off in European equities markets.  Case in point, note the behavior in the DAX heading into its closing bell and the fact that US equities bounced precisely when that bell rang.

20200220 close

None of this is material to the bigger picture, however, as we'd need to be seeing yields make a much sharper move up and over 1.67% before we'd consider the bond market to be doing anything other than consolidate February's coronavirus gains.  Limited econ data tomorrow.


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 2.5
100-16 : +0-06
Treasuries
10 YR
1.5190 : -0.0510
Pricing as of 2/20/20 4:34PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:36AM  :  Swan Dive in Stocks Helping Bonds Rally
8:44AM  :  Philly Fed Crushes It, But Bonds Aren't Panicking Yet

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Timothy Baron  :  "Seems like some investors very much want VA loans, others very much do not."

Economic Calendar
Time Event Period Actual Forecast Prior
Thursday, Feb 20
8:30 Philly Fed Business Index * Feb 36.7 12.0 17.0
8:30 Jobless Claims (k) w/e 210 210 205
Friday, Feb 21
9:45 PMI-Manufacturing (Markit) * Feb 51.5 51.9
9:45 PMI-Composite (source:Markit) * Feb 53.3
9:45 PMI-Services (Markit) * Feb 53.0 53.4
10:00 Existing home sales (ml)* Jan 5.43 5.54
10:00 Exist. home sales % chg (%)* Jan -1.8 3.6