MBS Live Recap: Uneventful But Slightly Stronger Start

At times, and especially during the summertime months, Mondays end up becoming unofficial weekend days.  And even though 10yr yields hit the lowest levels in almost 2 weeks this morning, the same could be said of today.  There weren't any clear examples of cause and effect in play, nor was there any significant volume or volatility.  The low yields were less than 2bps away from Friday's lows and we only traded about a 2bp range on the day.  MBS prices picked up almost an eighth of a point early in the day and were perfectly flat from there on out.

Econ Data / Events
  • Fed MBS Buying 10am, 1130am, 1pm

  • Markit PMIs:
       Services          70.1 vs 64.5 f'cast
       Manufacturing  61.5 vs 60.2 f'cast

  • Existing Sales 5.85m vs 6.09m f'cast

Market Movement Recap
08:51 AM

modestly stronger overnight in very light volume/volatility.  No overt market movers, and nothing of note on the econ calendar today.  10yr starting just over 1bp lower and MBS nearly an eighth of a point higher.

01:04 PM

Gains extended moderately in the 10am hour as the NYSE open brought cash into both sides of the market.  Comments from the Bank of England helped EU yields as well, and Treasuries may have taken some guidance from that.  We're now back in line with the AM's previous low yields at 1.608%.  MBS are still up 3 ticks (0.09). 

03:55 PM

No changes and no drama since the last update.  10yr yields still just over 1bp lower on the day and MBS still roughly an eighth of a point higher.  Unofficial 3rd day of the weekend.

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