Bonds Break Key Levels After Fed
Both MBS and Treasuries were right on the edge of their recent ranges heading into Fed day. MBS broke their range right out of the gate while Treasuries waited until the Fed was done before their breakout. If this positive momentum retreats tomorrow, it will be a great lock cue.
20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)
Pending Home Sales +16.6 vs +15.0 f'cast, +44.3 previously
Very quiet overnight session ahead of Fed announcement this afternoon. Stocks weakened slightly at first, but bounced higher in Europe. 10yr yields are up less than 1bp and MBS are starting the day unchanged.
Steady gains in MBS despite modest weakness in Treasuries and gains in stocks. Credit goes to the supply/demand landscape in MBS courtesy of the Fed. 2.0 UMBS now up an eighth will 10yr yields are up nearly 1bp.
Slightly stronger after the Fed said nothing new, but that strength follows some pre-Fed weakness. Result= Treasuries near unchanged and MBS still up an eighth. Stocks look similarly disinterested.
Following Powell's press conference, bonds found no reason to be spooked. Gains extended for Treasuries. MBS are still up about an eighth, but 10yr yields are now down 1.3bps to .566%