Surprisingly Quiet Quarter-End Trading. No Objections Here
The last trading day of any given month (especially if it's also the end of a quarter) can often see elevated volatility without any obvious motivation (here's why). While that was sort of the case for Treasuries today, even they were fairly calm in the bigger picture. MBS barely budged by comparison. With rates at all time lows, no objections here!
11:30-11:50 AM (ET) - Fed 30yr UMBS Buying
Case Shiller Home Prices (Apr): +0.3 vs +0.5 f'cast, +0.5 prev
Consumer Confidence: 98.1 vs 91.8 f'cast, 85.9 prev
Both stocks and bonds are unchanged after a quiet overnight session. Both found something to like in yesterday's release of today's Powell testimony on the pandemic response. MBS are starting the day up 1 tick (+0.03).
10yr +0.3bps on the day at 0.63%. UMBS 2.0 coupons down a few ticks from the highs. Stocks are up about 2/10ths of a percent. None of the above constitutes a big/meaningful move.
Treasuries are weaker now after having gone on a mini selling spree over the past 20-30 minutes, up 1.6bps on the day to .643%. MBS seem unfazed and are near their best levels of the day. Stocks have added to gains, but are up only about half a % on the day.
One of the most remarkably docile month/quarter-end trading days in recent memory. 3pm would typically be volatile on such a day, but no so today. MBS still slightly stronger. Treasuries still weaker, but off their worst levels. Stocks are unchanged from the last update.