Nothing good happened for the bond market today--at least not in terms of economic data coming in weaker or Fed speakers saying new and supportive things. In fact, the economic data was biased toward strength--especially if you ask Consumer Confidence at 110.7 vs 101 previously. Top that off with a modest miss in the 20yr bond auction and there was really and truly no great reason for bonds to improve during domestic hours. Nonetheless, the U.S.-only trading hours saw the best gains of the day as 10s rallied under 3.85% in the afternoon. That leaves us grasping at the same straws we set out for ourselves last week: i.e. an inconsistent year-end trading environment in which lighter volume/liquidity make for bigger-than-normal moves in response to compulsory year-end trading needs. The ball happened to bounce our way today. It could have gone either way.
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- Existing Home Sales
- 3.82m vs 3.77m f'cast, 3.79m prev
- Consumer Confidence
- 110.7 vs 104 f'cast, 101 prev
- Existing Home Sales
Steadily stronger throughout the overnight session. Modest bounce at 9am. MBS still up 2 ticks (.06) and 10yr down 3.3bps at 3.898
More modest losses after stronger consumer confidence. 10yr still down 2.6bps at 3.905, but at highs of the day. MBS still up 3 ticks (.09) but at lows of the day.
modest weakness giving way to moderate strength in the PM hours despite weaker Treasury auction. 10yr down 7.4bps at 3.857. MBS up 5 ticks (.16).
MBS Market Alerts
