MBS Live Recap: Sideways to Slightly Weaker After Another Long-Term High

10yr yields hit a 5-month high early in the overnight session and then managed to claw their way back to modestly stronger levels by the start of domestic trading.  Amid a dearth of data and actionable headlines, bonds were left to "trade it out."  That seemed to go fairly well at first, but yields adjusted back toward the highs of the day after the 20yr bond auction at 1pm ET.  Perhaps the more relevant detail is that 10yr yields were never able to make it below 1.62%, even at their best.  1.62% had been a ceiling 3 days ago before becoming a floor yesterday afternoon.  

Econ Data / Events
Market Movement Recap
08:39 AM

Weaker to start the overnight session with yields hitting multi-month highs of 1.673, but steady improvement since then, now back to 1.624.  MBS up nearly an eighth of a point.

01:06 PM

Flat since the morning, but losing some ground now after the 20yr Treasury auction.  10yr yields up .7bps at 1.649.  MBS still up 1 tick on the day at 102-14 (102.54).

03:40 PM

Bonds drifting mostly sideways, but near the weakest levels of the day.  10yr yields are up .3bps at 1.645 and 2.5 UMBS are now unchanged at 102-13 (102.41).

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