Simple, Boring, Half Point Sell-Off in MBS

If there happened to be some significant economic data today, or on the next two mornings, financial markets might wait to see what it implied before diving head-first into the pastime of overanalyzing Fed rate hike odds.  With essentially no relevant data between now and then, the task at hand is clear: get in position for the Fed (if you're not already) and react to any major developments in the banking sector.  Monday's early trading suggests markets are actually right about where they want to be after a bit of overnight volatility surrounding the UBS takeover of Credit Suisse.

Econ Data / Events
    • No significant econ data
Market Movement Recap
09:16 AM

10s are currently down 2.6bps at 3.412.  MBS are unchanged (5.0 coupons). 

11:27 AM

More legitimate weakness after an early bout of illiquidity.  MBD down 3/8ths with at least a quarter point of losses vs AM highs.  10yr yields are up 3.2bps at 3.47.

02:13 PM

Weakest levels of the day with MBS down just over half a point and 10yr yields up 5.4bps at 3.492.  Stocks are up about 2/3rds of a percent.

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