Bonds were back in action today although you’d hardly know it based on the narrow trading range. Stocks were much more willing to put on a show with S&P futures down 1.5% by the close. Bonds gleaned some small benefit from that, perhaps, as 10yr Treasuries went from slightly weaker to slightly stronger during the stock sell-off. In general though, bonds continue to wait on GA senate election results (earliest possible impact would be Thursday).
Market Movement Recap
08:36 AM
Active trading overnight, weaker at first, but then stronger during European hours. Slightly higher yields at the domestic open. Biggest movers so far = corporate issuance, and overnight headlines regarding a “new South African variant” of covid (mostly impacted UK bond markets, but helped US bonds).
01:18 PM
Treasuries turned positive, albeit reluctantly with the key consideration so far being a fairly substantial decline in stocks (S&P futures down almost 2%). 10yr yields aren’t even 1bp lower, however (.91%) and UMBS have only added 2 ticks (0.06). Stocks are trying to bounce, and bond yields may be encountering some resistance.
04:12 PM
Bond yields bottomed out in concert with stock prices just after noon. Both have inched higher since then. 10yr Treasuries are effectively unchanged and MBS are still up just a hair. Very ho-hum opener for 2021.
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 2.0 103-30 : +0-02 |
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| Treasuries |
10 YR 0.9130 : +0.0010 |
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| Pricing as of 1/4/21 4:15PMEST | |||
Today’s Reprice Alerts and Updates
8:46AM : (Another) New Covid Strain Not Enough Erase Early Losses
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By Matthew Graham , dated 2021-01-04 16:17:03
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Courtesy of Mortgage News Daily