The big news at the end of last week was Trump’s decision to veto the covid relief/spending bill.  After he signed it last night, overnight markets began pointing toward higher rates.  10yr yields were roughly 3bps higher to start the day, but it was all downhill from there (in a good way).  MBS led the charge early.  Treasuries ultimately broke even, with more buyers showing up after the 5yr Treasury auction.

Market Movement Recap

08:28 AM

Bonds weaker and stocks stronger overnight following the signing of the stimulus/spending bill.  10yr rose about 3bps and 1.5 UMBS are starting the day down just over an eighth of a point.

11:16 AM

Treasuries have been flat to slightly lower in yield, but still up almost 3bps on the day.  MBS are outperforming with 1.5 coupons just turning positive on the day.  No specific market movers behind the strength.  

01:42 PM

Additional gains after 5yr Treasury auction.  Notably, the auction was weaker than expected, but bonds improved anyway.  This suggests traders are anxious to get past this week’s Treasury supply.  10yr yields are now within 1bp of ‘unchanged’ and MBS have added another 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.


UMBS 2.0

103-18 : +0-01


10 YR

0.9300 : +0.0000

Pricing as of 12/28/20 3:58PMEST

Today’s Reprice Alerts and Updates

1:50PM  :  More Gains After Treasury Auction

11:16AM  :  MBS Battle Back to Unchanged After Opening Weaker

MBS Live Chat Highlights

Dez Loessberg  :  “Just wanted to wish everyone a healthy and safe New Year. May 2021 be even more prosperous towards everyone’s wealth building. I am signing off for the year and taking some much needed time off…finally. Thank you MG for providing an irreplaceable platform for us and thank you to all you MBSLivers for making this community what it is today. All the best!”

Economic Calendar

Time Event Period Actual Forecast Prior
Tuesday, Dec 29
9:00 CaseShiller 20 yy (% ) Oct 6.9 6.6
9:00 CaseShiller 20 mm SA (%) Oct 1.0 1.3
10:00 Consumer confidence * Dec 97.0 96.1
13:00 7-Yr Note Auction (bl)* 59

By Matthew Graham , dated 2020-12-28 16:00:41

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Courtesy of Mortgage News Daily

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