Uneventfully Holding Near Long-Term Rate Highs
This morning's commentary centered on last Friday's dark horse market mover (the overseas central bank announcements from the previous day). That helps us reconcile a surprisingly big reaction to the jobs report. Heading into the new week, European bonds remain under pressure and US bonds weren't eager to lead the charge back down to lower yield levels. Bonds improved somewhat in the afternoon, but Treasuries were unchanged at the close.
Fed MBS Buying 10am, 11:30am, 1pm
Calm in Asia. Weaker in Europe. Treasuries flat to start, but weakening in the past half hour. 10yr up 1.6bps at 1.932 and MBS down 3 ticks (0.09) at 101-11 (101.34).
Flat and calm all day relative to Friday. Modest gains in the past 2 hours with MBS now 1 tick higher on the day. 10yr effectively unchanged at 1.919%.
Against Friday's backdrop, today ended up being extremely flat. 10yr is perfectly unchanged at 101.916 and MBS are now 3 ticks (0.09) higher.