MBS RECAP: Activity Increases, Ultimately Benefiting Bonds After Retail Sales Miss

By: Matthew Graham •

After a fairly slow start to the week, bond markets threatened to move higher yesterday afternoon and into the overnight session.  With bonds trading at their weakest levels of the week, things looked fairly gloomy right up to the 8:30am release of the Retail Sales data.  After the data came out weaker than expected, the tone reversed abruptly, ushering in the best levels of the week before flattening out in the afternoon.

This "best/worst" business is a bit less dramatic than it sounds considering the range in 10yr yields had been roughly 2.41 to 2.44.  Overnight trading pushed us up to 2.47.  Intraday trading got us down just below 2.41, and we're heading out the door at 2.42.  It's a similar story for MBS, which were at their weakest levels of the week to start the day, and moved quickly to the week's best levels after Retail Sales.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.0
98-24 : +0-09
FNMA 3.5
102-16 : +0-09
FNMA 4.0
105-19 : +0-06
Treasuries
2 YR
0.4159 : -0.0201
10 YR
2.4202 : -0.0218
30 YR
3.2456 : -0.0214
Pricing as of 8/13/14 4:40PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:11PM  :  Uneventful Response to Uneventful 10yr Auction
8:51AM  :  Bond Markets Into Positive Territory After Retail Sales Data
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ted Rood  :  "Guarantee DU picks it up too, unless it's coded totally wrong with all three bureaus, which is highly unlikely."
Nathan Miller  :  "usually it notates settlement, which adverseley impacts"
Ted Rood  :  "yes they do!"
dustin mcalister  :  "do short sales with no lates damage your credit score after it is sold? they don't do they?"