Bonds started out weaker and looked like they might make a recovery in the afternoon thanks to a big stock sell-off. But yields refused to move back below the .76% pivot point. That's not the end of the world, but if bonds were inclined to rally or if they were feeling resilient, that would have been a good excuse to move into positive territory on the day. Failing to do so sends a somewhat ominous signal about the path ahead.
-
20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)
-
NAHB Builder Confidence 85 vs 83 f'cast, 83 prev
Bonds modestly weaker overnight with almost all of the losses hitting immediately after London opened. The culprit seems fairly conclusive: Brexit headlines. Yes, it still matters apparently! S&P futures up 0.7% and 10yr yields up 2.34 bps. MBS down 2 ticks (-0.06).
Decent recovery for bonds with MBS now unchanged and Treasuries down to the .76% pivot point (still one bp higher on the day). Weakness in stocks and a rally in EU bonds both helped.
Heading into the final hour of trade with MBS near their weakest levels of the day. Treasuries are near their strongest levels but yields are still higher on the day. That's disappointing considering the depth of the reversal in stocks.
MBS Market Alerts
