Fundamentals and technicals represent the two main schools of thought when it comes to market analysis (read more on that here). Once school is suggesting a potential bounce higher for rates while the other remains hopeful. This is a deceptively big week in terms of new information for both approaches.
Market Movement Recap
Bonds were almost perfectly flat in very light trading overnight. Treasuries are starting the day roughly unchanged from Friday’s latest levels. MBS are down an eighth. Stocks are .7% higher (S&P futures).
Some resilience in bonds despite additional gains in equities. Yields remain well off Friday’s lows, but have now returned to ‘unchanged’ for the 10yr. 2.0 UMBS are down an eighth of a point at 102-18 (102.56).
Stocks dropped quickly at 2pm and MBS seemed to glean more of a benefit than Treasuries. UMBS 2.0 coupons briefly turned green but weren’t able to maintain the gains (now down 2 ticks or 0.06 on the day).
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
102-21 : -0-01
0.6280 : -0.0050
|Pricing as of 7/13/20 3:36PMEST|
Today’s Reprice Alerts and Updates
3:03PM : MBS Unable to Sustain Positive Territory Despite a Solid Bounce
1:32PM : Treasuries Back to Unchanged, But MBS Underperform
9:09AM : ALERT ISSUED: MBS Losing Ground Early