MBS Live Recap: Bonds Remain Under Pressure, But MBS Outperformed

Bonds managed to remain sideways during AM hours.  In fact, MBS were as much as an eighth of a point higher versus opening levels by 11:30am.  The tone soured in the PM hours.  10yr yields ultimately crested 1.48% and MBS lost nearly a quarter of a point day over day.  The weakness is decidedly focused on Treasuries due to the auction cycle, corporate issuance, and the "risk-on" momentum in the broader market.

Econ Data / Events
Market Movement Recap
12:31 PM

moderately weaker overnight with losses extending into the 9am hour.  Sideways since then with 10yr yields up 2.4bps at 1.456 and MBS down an eighth of a point.

01:20 PM

A bit of weakness heading into the 1pm hour.  MBS near lows, down 5 ticks (.16) and 10yr near highs, up 3bps at 1.463.

03:33 PM

More new highs for 10yr yields, now up 5bps at 1.484%.  MBS are unchanged from the last update.

04:38 PM

Just a bit more weakness to end the day.  MBS now down a quarter point at new lows of 102-04 (102.125).  10yr right in line with last update.  Illiquidity is making the MBS losses look a few ticks bigger than they are, at times.

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