2 Wild Weeks That Mostly Cancel Each Other Out

Bonds were weaker overnight almost in perfect unison with stock market strength.  10yr yields are starting out 3.5bps higher (inconsequential in the recent context) and UMBS are less than an eighth of a point weaker.

A bit more weakness as stocks moved higher at the NYSE Open.  Nothing major in the bigger picture with 10yr yields at .71% vs a range ceiling at .74%.  MBS were briefly down a quarter point, but have bounced back by 0.06 already.

 bonds have reversed course and are heading back toward ‘unchanged’ levels.  The move coincides with a reversal in stocks

Both MBS and Treasuries are settling into a consolidation pattern (higher lows and lower highs) heading into the weekend.  Both patterns are playing out at just slightly weaker (but not alarming) levels.  MBS are still down less than an eighth of a point.

MBS are grinding the day out at the lowest levels.  Treasury yields are near their highs.  There’s no outright sell-off in bonds, but it’s a bit weaker than it was at last check.