Today offers firm confirmation of the range breakout we’d been hoping to see this week.  These sorts of breakouts are positive signals in the bigger picture, but risk-averse rate watchers can use them as early warning signs for short-term shifts.  Today’s video discusses this in greater detail.

Market Movement Recap

08:16 AM

Bonds were modestly weaker overnight, but domestic buyers got an early start around 6:30am.  With another slight boost from weak ADP data, Treasuries just turned positive and MBS are effectively unchanged.

11:03 AM

Gains extending a bit now, with more friendly Fed-speak, this time from Williams.  10yr yields down 1.6bps on the day to .66% and 2.0 UMBS up 2 ticks (0.06) at 103-11 (103.34).

01:28 PM

Comments from Fed speakers have generally been supportive.  Bonds hit their best levels just before noon and have pulled back a bit since then.  The bounce coincides with stock market strength.  10yr yields still down 2.3bps on the day at .649.  UMBS 2.0 still up 2 ticks (0.06) at 103-11 (103.34).

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

103-11 : +0-01


10 YR

0.6542 : -0.0168

Pricing as of 9/2/20 3:38PMEST

Today’s Reprice Alerts and Updates

8:31AM  :  Bonds Briefly Turn Positive After ADP Data

Economic Calendar

Time Event Period Actual Forecast Prior
Wednesday, Sep 02
7:00 MBA Purchase Index w/e 309.6 310.2
7:00 Mortgage Refinance Index w/e 3316.2 3423.0
8:15 ADP National Employment (k)* Aug 428 950 167

By Matthew Graham , dated 2020-09-02 15:40:29

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Courtesy of Mortgage News Daily

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