Markets continue trying to sort out the prospects for a recovery vs the risk of covid-19 resurgence. Today’s battle was between super strong Retail Sales data and disconcerting covid headlines for a few US states as well as Beijing.
Econ Data / Events
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11:30-11:50 AM (ET) – Fed 30yr UMBS Buying
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Retail Sales:+17.7 vs +8.0 f’cast, -14.7 prev
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NAHB Builder Confidence: 58 vs 45 f’cast, 37 prev
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Industrial Production: +1.4 vs +2.9 f’cast, -12.5 prev
Market Movement Recap
07:53 AM
Stocks and bond yields higher overnight. Follow-through trading on yesterday’s corporate bond buying announcement from Fed. Also, talk of $1 trillion infrastructure bill. 10yr yield up 3bps to start the day (.75%).
08:43 AM
Stocks surging and bond yields rising on super strong Retail Sales data. MBS look like they’re still asleep with no discernible reaction so far.
10:32 AM
Stronger NAHB may not have helped, but markets focused more on Powell saying “near a bottom” and “beginning the 2nd phase of the re-opening.” Yields at the highs. MBS near lows.
10:50 AM
Losses reversed course on a variety of COVID-related headlines, although Powell was also saying more sobering things about the economy around the same time.
02:19 PM
Uneventful afternoon so far with bonds sideways at slightly weaker levels, but well inside the highs/lows discussed in the past 2 updates.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS |
UMBS 2.0 101-26 : -0-04 |
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Treasuries |
10 YR 0.7500 : +0.0480 |
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Pricing as of 6/16/20 3:56PMEST |
Today’s Reprice Alerts and Updates
10:50AM : Losses Reverse Course; MBS at Today’s Highs
10:32AM : ALERT ISSUED: Bonds Losing Ground as Powell Speaks and After Strong Builder Data
8:41AM : Retail Sales Crushes Forecast; Markets Responding
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By Matthew Graham , dated 2020-06-16 15:58:56
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Courtesy of Mortgage News Daily