Weaker Despite Decent Mid-Day Bounce
Bonds began the week in weaker territory with yields pulled higher by EU bond market losses, rising oil prices, stronger stocks and a smattering of corporate issuance. MBS outperformed as Treasuries were more directly caught in the crossfire. Both sides of the market staged a comeback attempt after EU markets closed. A slump in stocks helped, but the rally faded just before the 4pm hour.
- NAHB Builder Confidence 55 vs 65 f'cast, 67 prev
Bonds unable to make gains overnight. Weaker at the open and weaker still since then. 10yr up 6bps at 2.99. MBS down roughly 3/8ths.
MBS at best levels and Treasuries near best levels of the day. 10yr still up 4bps at 2.967 and MBS down only 3 ticks (.09) at 100-05 (100.16).
Off the best levels now with MBS down roughly an eighth of a point from the highs and 6 ticks on the day (0.19). 10yr yields are up a few bps from the most recent update, currently up 6bps on the day at 2.99.