Today began with more upward pressure on yields, apparently due to a higher-than-expected inflation report in the UK. That jived with much of the recent analysis which gives plenty of credit to UK market volatility for spilling over to the US. A closer look at this week's US vs UK yields shows a breakdown in the recent correlation--one in which US yields are continuing higher while UK yields are recovering. We were left with explanations so unsatisfying that they may as well be filed under "just because."
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- Housing Starts
- 1.439m vs 1.475m f'cast, 1.566m prev
- Building Permits
- 1.564m vs 1.530m f'cast, 1.542m prev
- Housing Starts
Sharply weaker overnight, mostly after higher inflation data in the UK. 10yr up almost 10bps to 4.10%. MBS down 3/4ths of a point.
Decent recovery. MBS still down 14 ticks (.44) on the day but up more than 3/8ths of a point from the lows. 10yr still up 7.3bps on the day, but down more than 4bps from the highs.
Mid-day gains mostly gone with 10s up 11bps at 4.115 and MBS down 5/8ths on the day.
weaker 20yr bond auction pushing yields to new highs.
Back near weakest levels of the day for MBS, now down 3/4ths of a point and up to new highs for Treasuries, up 12.3bps at 4.129
MBS Market Alerts
