Bonds Sell-Off, But MBS Outperform
The week began decently enough with bonds holding most of last week's gains during the first 90 minutes today. Things began to go south after the 9:30AM NYSE open as bond yields followed stocks higher. 10yr yields rose roughly 8bps by the 3pm CME close to hit 1.43+. In terms of price, that's a loss of roughly 3/4ths of a point. Contrast that to MBS losses at the same time of only an eighth of a point and the outperformance becomes very clear.
Fed MBS Buying 10am, 11:30am, 1pm
Moderately weaker overnight as risk assets bounce. Mostly flat after initial losses. 10yr up 3bps at 1.387 and MBS down an eighth.
Slipping slightly in the first few hours, largely in line with opening gains in stocks. 10yr up 4.4bps now at 1.40%. 2.5 UMBS down an eighth of a point at 102-12 (102.375).
down an eighth from AM highs, outperforming Treasuries. 10yr is up 7 bps at 1.427.