After 5 straight trading days of weakness and 3 stubborn days failing to break below the most recent rate floor, bonds finally managed to put in a solid performance. To recap, that's one (1) good day versus 8 consecutive days that were less than good. All of the above fits the narrative of broader sideways range-finding but the big question is whether or not today's single day of gains is enough to suggest that bonds are at their near-term ceiling. To the optimists, we'd say that's not impossible. To the pessimists, it's not guaranteed, and to everyone in between, it probably depends on the upcoming data and events.
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Fed MBS Buying 10am, 11:30am, 1pm
modestly higher to start overnight session, then slightly stronger during European hours. 10yr yield down almost 3bps, right in line with 3.01% technical level. MBS starting out an eighth of a point higher.
Additional gains at the 9:30am NYSE open with money hitting both sides of the market. 10yr down 6.6bps at 2.974 and MBS up 3/8ths at 99-20 (99.625).
Modest volatility after 3yr Treasury auction, but back near the best levels of the day. 10yr and MBS both at the same levels from the previous update.
MBS Market Alerts
