All-Time Levels All Around. Here's How To Play It
Another day, another opportunity for MBS prices to hit record highs and rates to--well... rates are just sort of kicking around a piece of ground in their home town (at all time lows), but notably, they're not looking too eager to improve. Why is that and what should you do about it?
20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)
Core PCE Inflation 0.9 vs 1.0 f'cast
Bonds began the overnight session slightly stronger and chopped around in a narrow range since then. 10yr yields are starting the domestic session down about 1bp. 2.0 UMBS are starting out up 2 ticks (+0.06).
Quick, serendipitous weakness just now taking 10yr yields 2 bps higher and MBS an eighth lower. Looks like the bounce may be in already though. Month-end trading.
Stocks are sliding and bonds have bounced back a bit. 10yr now unchanged and 2.0 UMBS up 2 tick (0.06).
MBS surged into the close, ending the day more than a quarter point higher at new all-time highs. 10yr yields are effectively at all-time lows (for those who throw out March 9th craziness). And all this despite a nice recovery to stronger levels in stocks. Farewell July!