MBS RECAP: Bonds Reeling. Was That Enough Weakness to Find Some Support?

Pfizer’s vaccine trial update rocked markets this morning, making for the biggest hour of overnight trading volume (and the highest Treasury yields)  in months.  MBS outperformed, but not enough to prevent higher mortgage rates across the board.  The weakness was so swift that it opens the question: was that enough to entice bond buyers to step back in?  

Market Movement Recap

08:19 AM

Stocks instantly popped to all-time highs and bonds blew up following news that Pfizer’s vaccine is over 90% effective. 10yr yields are up 10bps at .92%, down from .937% highs. MBS are outperforming, as we’d expect in almost any case of massive bond weakness, with 2.0 UMBS down 9 ticks (.28) at 103-13 (103.41).

10:33 AM

Massive snowball sell-off in the bond market… Biggest we’ve seen post-covid and post-Fed-intervention in March.  10yr broke .96% ceiling!  Up 14+ bps.  2.0 UMBS down 5/8ths of a point and falling.  No “new” news after vaccine update this morning.  This is a technical/momentum move in bonds.  Stocks are actually lower in the past 2 hours.

01:59 PM

The runaway weakness seems to have leveled off for now with MBS doing a bit more than Treasuries to push back in the other direction, but both still suffering heavy losses on the day.  10yr yields are in the same spot as last check.  MBS are now down  bit less than .625 after being down as much as .75.

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

103-05 : -0-17


10 YR

0.9510 : +0.1310

Pricing as of 11/9/20 3:22PMEST

Today’s Reprice Alerts and Updates

10:31AM  :  ALERT ISSUED: Negative Reprices Becoming More Likely

10:14AM  :  ALERT ISSUED: MBS Already Down a Quarter Point From AM Levels

8:19AM  :  ALERT ISSUED: Bonds Explode Weaker on Vaccine News

By Matthew Graham , dated 2020-11-09 15:24:00

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Courtesy of Mortgage News Daily

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