The recent losing streak in the bond market made it increasingly likely that we’d see a win this week.  Ideally, it would have aligned with a strong response to Wednesday’s 10yr auction, but instead, we got a halfhearted version on Tuesday.  While this is technically a tactical cue to float for the most risk tolerant clients, that’s an aggressive strategy until we see how the market reacts to the 10yr auction.  Either way, the bigger picture rising rate trend remains easily intact.

Market Movement Recap

08:31 AM

Bonds improved overnight as stocks remained in check and European bonds joined in the short-covering trade.  A Spanish bond auction (of all the crazy things) was the big market mover of the night.  Yields have been rising very slowly heading into domestic hours (more noticeable in EU bonds than Treasuries).  MBS are up 3 ticks (.09).

01:03 PM

Like yesterday, bonds rallied into the European close (more modestly today) and have been slipping since then.  The 3yr Treasury auction was uneventful.  10yr yields are down 2.6bps at 1.15%, right in line with AM levels.  2.0 UMBS are up 3 ticks (.09) at 103-04 (103.125),

03:12 PM

Increasingly giving back the gains in the PM hours.  10yr yields are still lower on the day, but now only by about 1bp (1.162%).  MBS are 2 ticks (.06) off their mid day highs with 2.0 coupons still up 2 ticks 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.

MBS

UMBS 2.0

103-03 : +0-02

Treasuries

10 YR

1.1600 : +0.0000

Pricing as of 2/9/21 3:16PMEST

Today’s Reprice Alerts and Updates

8:43AM  :  Bonds Holding Modest Overnight Gains


Economic Calendar

Time Event Period Actual Forecast Prior
Tuesday, Feb 09
13:00 3-Yr Note Auction (bl) 58
Wednesday, Feb 10
7:00 MBA Purchase Index w/e 334.6
7:00 MBA Refi Index w/e 4746.2
8:30 Core CPI (Annual) (%)* Jan 1.5 1.6
10:00 Wholesale inventories mm (%) Dec 0.1 0.1
13:00 10-yr Note Auction (bl)* 41

By Matthew Graham , dated 2021-02-09 15:18:01

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Courtesy of Mortgage News Daily

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