Pfizer's vaccine trial update rocked markets this morning, making for the biggest hour of overnight trading volume (and the highest Treasury yields) in months. MBS outperformed, but not enough to prevent higher mortgage rates across the board. The weakness was so swift that it opens the question: was that enough to entice bond buyers to step back in?
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20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)
Stocks instantly popped to all-time highs and bonds blew up following news that Pfizer's vaccine is over 90% effective. 10yr yields are up 10bps at .92%, down from .937% highs. MBS are outperforming, as we'd expect in almost any case of massive bond weakness, with 2.0 UMBS down 9 ticks (.28) at 103-13 (103.41).
Massive snowball sell-off in the bond market... Biggest we've seen post-covid and post-Fed-intervention in March. 10yr broke .96% ceiling! Up 14+ bps. 2.0 UMBS down 5/8ths of a point and falling. No "new" news after vaccine update this morning. This is a technical/momentum move in bonds. Stocks are actually lower in the past 2 hours.
The runaway weakness seems to have leveled off for now with MBS doing a bit more than Treasuries to push back in the other direction, but both still suffering heavy losses on the day. 10yr yields are in the same spot as last check. MBS are now down bit less than .625 after being down as much as .75.
MBS Market Alerts
