MBS Outperform Ahead of CPI
Monday had very little to offer in terms of calendar events or meaningful headlines to inspire bond market momentum for better or worse. The result is unsurprising if you ask Treasuries: 10yr yields are drifting very close to unchanged on the day after early selling and a late morning bounce. If there's a development that's worth mentioning, it would be the MBS outperformance. Case in point, 6.0 UMBS are ending the day in line with Friday's 11am levels while 10yr yields are more than 4bps higher versus the same baseline. As interesting as that may be, all bets are off after 8:30am tomorrow (CPI).
MBS down almost a quarter point. 10yr up 4bps at 4.686.
Bouncing back into the noon hour. MBS roughly unchanged. 10yr up only 0.2bps at 4.648.
MBS at best levels, up almost 3/4ths. 10yr down 1bp at 4.636.