Big losses in both stocks and bonds today as traders take their seats for next week’s big show.  Month-end trading volumes were huge.  It was the single biggest trading day since June.  After 2016, no one wants to be anything other than nimble on election week.  

Econ Data / Events

  • 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)

  • Core PCE Inflation, annual 1.5 vs 1.7 f’cast, 1.4 prev

  • Chicago PMI 61.1 vs 58.0 f’cast, 62.4 prev

Market Movement Recap

09:00 AM

Mixed performance overnight amid heavy volume.  Stronger in Asia.  Weaker in Europe.  Nearly unchanged to start the domestic session and slightly stronger since then.  No reaction to data.  A few big, obvious, month-end trades helping so far.

03:59 PM

Bonds and stocks both lost ground in a fairly big way in the morning hours as traders decided they’d much rather be in cash heading into election week.  Mid-day hours were fairly flat and weakness returned at the 3pm CME close.  Month-end volume was massive–biggest in 4+ months–adding emphasis to the bond market’s defensive approach to the week ahead.

MBS Pricing Snapshot

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.


UMBS 2.0

103-03 : +0-00


10 YR

0.8737 : +0.0377

Pricing as of 10/30/20 4:07PMEST

Today’s Reprice Alerts and Updates

11:14AM  :  ALERT ISSUED: A “For What It’s Worth” Alert

9:00AM  :  Stronger (Then Weaker) Overnight. Unchanged After Data

Economic Calendar

Time Event Period Actual Forecast Prior
Friday, Oct 30
8:30 Core PCE Inflation (y/y) (%)* Sep 1.5 1.7 1.6
9:45 Chicago PMI * Oct 61.1 58.0 62.4
10:00 Consumer Sentiment (ip) Oct 81.8 81.2 81.2

By Matthew Graham , dated 2020-10-30 16:09:17

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Courtesy of Mortgage News Daily

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