The Fed cut rates and ended QT. Neither were surprises for markets and neither had an impact. The press conference was hawkish, however, with Powell saying a December cut was far from a foregone conclusion. This is very much counter to the market's expectation that a December cut was a lock. Fed Funds Futures tanked and yields surged about 8bps in the 10yr. MBS lost about 3/8ths and negative reprices continue to roll in.
Econ Data / Events
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- Case Shiller Home Prices-20 y/y (Aug)
- 1.6% vs 1.9% f'cast, 1.8% prev
- CaseShiller 20 mm nsa (Aug)
- -0.6% vs -- f'cast, -0.3% prev
- FHFA Home Price Index m/m (Aug)
- 0.4% vs 0.1% f'cast, -0.1% prev
- FHFA Home Prices y/y (Aug)
- 2.3% vs -- f'cast, 2.3% prev
- CB Consumer Confidence (Oct)
- 94.6 vs 93.2 f'cast, 94.2 prev
- Labor differential: 9.40 vs 7.80 prev
- Case Shiller Home Prices-20 y/y (Aug)
Market Movement Recap
10:26 AM
modestly weaker overnight and holding steady so far. MBS down 1 tick (.03) and 10yr up 1.6bps at 3.992
01:28 PM
10yr yields are up 2.9bps at 4.005 and MBS down 3 ticks (.09)
01:41 PM
MBS now down 5 ticks (.16) and 10yr up 3.5bps at 4.012
MBS Market Alerts
