The overnight session was mostly uneventful for the bond market, but trading levels were slightly weaker in the first hour of trading.  Since then, buyers have shown up.  Most of the gains have coincided with weaker stocks at the 9:30am NYSE open.

20211118 open3.png

In the bigger picture, this keeps yields safely below the 1.71 technical level and it reinforces yesterday's bounce at 1.65.  There is an internal trendline (upper yellow line in the chart below) with the same slope as the broader uptrend (lower yellow line).  Yields are encountering resistance at that upper line so far this morning.  If it's broken, the next key test would be at 1.54%.

20211118 open2.png

Today's bonus chart is a snapshot of covid hot spots and a weather map with low temperatures from 2 weeks ago.  Correlation is not causality, but it's something to keep an eye on as winter progresses. 

20211118 open.png


MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
UMBS 2.5
102-11 : +0-02
Treasuries
10 YR
1.5910 : -0.0130
Pricing as of 11/18/21 10:36AMEST

Tomorrow's Economic Calendar
Time Event Period Forecast Prior
Thursday, Nov 18
8:30 Philly Fed Business Index * Nov 24.0 23.8
8:30 Jobless Claims (k) w/e 260 267
8:30 Continued Claims (ml) w/e 2.120 2.160
10:00 Leading index chg mm (%) Oct 0.8 0.2