Stop us if you’ve heard this one before, but rates are low due to an unprecedented global emergency. Unless coronavirus situations deteriorates significantly, it’s only fair for rates to gradually push back toward higher levels. But when case counts spike, bonds are still willing to respond.
Market Movement Recap
Bonds WERE slightly stronger as stocks weakened overnight session. 10s made it to .699, but yields bounced higher in early domestic trading, now up to .73%. MBS are hitting their first trades about 1-2 ticks (.03-.06) weaker.
Yields are surging (relatively) lower as stocks slump at the 9:30am NYSE open. 10s now down 1.3bps on the day. UMBS 2.0 turning positive, up 1 tick (0.03) on the day, trading just under 102.
10yr yields are now down below the .69% floor as stocks sell-off aggressively. MBS aren’t moving nearly as much. 2.0 UMBS are up 1 tick (0.03) on the day at 101-29 (101.91).
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
101-31 : +0-02
0.6820 : -0.0270
|Pricing as of 6/24/20 3:25PMEST|
Today’s Reprice Alerts and Updates
2:05PM : Strong Demand at 5yr Auction, But Limited Impact
11:47AM : Decent Improvement For Bonds as Stocks Slump
8:22AM : Bonds Slightly Weaker to Start