• 10yr yields were as low as 1.406 overnight, but moved up to the mid 1.5's by the close
  • MBS were up nearly 7/8ths of a point at their best, but will have to settle for "only" about 5/8ths of a point
  • Trading was driven by Brexit, exclusively.  Data was ignored
  • Too soon to tell how this one will play out, but it's more encouraging than the last mega rally

While we did get some economic data this morning that has historically been important to markets, the only order of the day was to trade in response to Brexit and then to trade in response to those trades.  Although we lost quite a bit of ground from the best levels of the overnight session, bond markets nonetheless ended the day in much stronger territory, marking their best closing levels in more than 3 years.

The last time bond markets experienced an unexpectedly sharp rally it was the February 11th explosion that signified the end of the mega rally that began 2016.  Bonds actually ended that day at higher yields than the previous day.  This time around, while 10yr yields backed up by a similar amount from intraday lows, they managed to end the day at much lower yields than the previous day, not to mention the fact that they held steadier during the domestic session.

All that to say: it's too soon to tell if this move will end up having more staying power than the early February move.  For now, chances look better based on today's trading, but an additional pull-back isn't out of the question next week.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
103-09 : +0-20
10 YR
1.5670 : -0.1720
Pricing as of 6/24/16 4:31PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:40PM  :  ALERT ISSUED: Negative Reprice Risk Increasing
9:51AM  :  ALERT ISSUED: Understandable Corrective Pressure Digging Into Gains

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Victor Burek  :  "you will get another opportunity"
Matthew Graham  :  "you can still take a picture of the "LOW" field in the 10yr chart, which reads 1.4060"
Andrew Haynes  :  "really? dang i missed that...i would have taken a picture and hung it on the wall"
Victor Burek  :  "was much more earlier when at 1.40"
Andrew Haynes  :  "if we hold here that will be amazing"
Andrew Haynes  :  "i can't believe im seeing almost 19 BP move on the 10 year...."
Nathan Miller  :  "will lock any new ones that are interested. very doubtful we see any new RP's today, and if market doesn't open green on Monday, we wont see any love, they may even take some, IMO"
Dez Loessberg  :  "they are probably protecting against all the potential renegotiation requests looming..."
Sung Kim  :  "i refuse to lock base don Thursday rate sheets"
Andy Pada, Jr.  :  "i locked first thing this morning"
Michael Shasteen  :  "I'm not locking anyone not yet... Will wait until they give up what's being held."
Victor Burek  :  "not me"
Oliver Orlicki  :  "Who is locking today"