After weeks of gradual strength in bonds, this week begins with rates under modest pressure.  The rest of the week brings several other potential market movers in addition to the ongoing hyperfocus on covid numbers. 

Econ Data / Events

  • 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)

  • Durable Goods Orders: 7.3 vs 7.0 f’cast, 15.1 prev

  • Cap-Ex 3.3 vs 2.3 f’cast, 1.6 prev 

Market Movement Recap

08:45 AM

Stocks stayed modestly stronger in the overnight session with the street giving credit to generally positive earnings reports.  Bonds avoided paying too much attention, spending the night mostly flat and starting the domestic session in just slightly stronger territory.  No major reaction to the Durable Goods data.

12:55 PM

Very little to report as bonds are little-changed from the outside.  Treasuries are minutes away from digesting the 5yr auction and that could be a reason yields are near the higher end of the day’s range.  2.0 UMBS are outperforming, up 3 ticks on the day (0.09) still trading just shy of 103.00.  

01:04 PM

5yr auction, 2.88 vs .284 forecast. Not causing a huge reaction, but could be the reason for modest weakness in Treasuries just now

03:22 PM

A bit more weakness over the past 90 minutes with 10yr yields now up more than 2bps on the day.  MBS are still positive.  Stocks are at their highs.  

MBS Pricing Snapshot

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.


UMBS 2.0

102-29 : +0-02


10 YR

0.6100 : +0.0210

Pricing as of 7/27/20 3:24PMEST

Today’s Reprice Alerts and Updates

2:29PM  :  Bonds Under Some Pressure After 5yr Auction

8:51AM  :  No Major Reaction to Durable Goods Data

Economic Calendar

Time Event Period Actual Forecast Prior
Monday, Jul 27
8:30 Nondefense ex-air (%)* Jun 3.3 2.3 1.6
8:30 Durable goods (%)* Jun 7.3 7.0 15.7
13:00 5-Yr Note Auction (bl)* 49
Tuesday, Jul 28
9:00 CaseShiller 20 yy (% ) May 4.0 4.0
10:00 Consumer confidence * Jul 94.5 98.1
13:00 7-Yr Note Auction (bl)* 44

By Matthew Graham , dated 2020-07-27 15:26:09

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Courtesy of Mortgage News Daily

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