MBS RECAP: Jobs Week. Now Can We Break The Range?

The end of the week brings the first Friday of the month (of October!) and thus the big jobs report–the economic data that has ruled all others throughout bond market history.  The post-covid bond market dynamic means the jobs report would have to fall almost unimaginably far from forecasts to have a big impact.  What to do in the meantime?  Same thing we do every day for the past few months: guard the range and wait for breakout.

Market Movement Recap

08:37 AM

Stocks opened stronger overnight after Friday’s later rally.  S&P futures up 1.42% to start and bonds paid some attention to those gains with 10yr yields up just over 1bp to .668%.  MBS are opening 1 tick (0.03) weaker at 103-09 (103.28).

02:47 PM

Nice upward drift in MBS prices, yet again, despite modest weakness in Treasuries.  Like last week, credit lighter supply from MBS sellers, and Treasuries being harder hit by stock market gains (which is still not very hard).  10yr yields up .65bps to .663.  And 2.0 UMBS up almost an eighth at 103-12 (103.125).


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

103-13 : +0-03

Treasuries

10 YR

0.6594 : +0.0004

Pricing as of 9/28/20 3:48PMEST

Today’s Reprice Alerts and Updates

2:58PM  :  MBS Outperforming Again as Supply Stays Muted


Economic Calendar

Time Event Period Actual Forecast Prior
Tuesday, Sep 29
9:00 CaseShiller 20 yy (% ) Jul 3.8 3.5
10:00 Consumer confidence * Sep 89.5 84.8

By Matthew Graham , dated 2020-09-28 15:49:55

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Courtesy of Mortgage News Daily

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