Bonds are in the throws of an extended negative momentum move that’s been in place throughout October. At times, stimulus-related headlines have accounted for volatility during this move. Today was one of the handful of weaker days for Treasuries, yet MBS are down only 1 tick heading into the end of the day. They’ve been doing this a lot lately, and it makes it even easier for lenders to avoid raising rates nearly as quickly as the broader bond market suggests.
Econ Data / Events
20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)
Jobless Claims 787k vs 860k f’cast, 842k prev
Existing Home Sales 6.54m vs 6.3m f’cast, 5.98m prev
Market Movement Recap
Bonds opened slightly stronger in Asia and remained almost perfectly flat throughout the overnight session. There was a brief moment of selling pressure just now following the stronger-than-expected Jobless Claims data. But 10yr yields are staying in their overnight range, down 1.5bps at .806%. MBS are up 1 tick (+0.03).
Losing ground now, somewhat abruptly relative to the overnight calm. Weakness follows headlines quoting Pelosi saying stimulus could be passed before election and that talks with Trump are on a good path. Treasuries turned negative and are 2bps higher vs 830am. MBS are also in the red, down 2 ticks (0.06) at 102-30 (102.94).
MBS have bounced back nicely, ONCE AGAIN outperforming Treasuries which are still near their weaker levels of the day. Stimulus headlines at 10:45am (read more) were the culprit. 10yr is up just over 2bps. MBS are down only 1 tick (0.03).
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
102-30 : -0-02
0.8596 : +0.0436
|Pricing as of 10/22/20 3:51PMEST|
Today’s Reprice Alerts and Updates
11:09AM : ALERT ISSUED: Negative Reprice Risk Increasing
8:41AM : Modest Overnight Gains Intact After Stronger Claims Data