MBS MID-DAY: Bond Markets Generally Weaker, But Still Inside Friday's Range

By: Matthew Graham •

Nothing of note has transpired or conspired to move bond markets today.  It's another Monday without economic data, meaningful headlines, or strong participation among traders.  As has been the case of late, that leaves tradeflows in control of our destiny.  To that end, Treasuries bounced against technical resistance yet again this morning.

The last major high in 10yr yields was 1.982 on April 13th.  Until or unless yields break back above that level, bonds are simply stuck in an ultra narrow sideways grind..

One relative benefit of narrow Treasury trading ranges is that MBS tend to outperform.  That looks like the case today in terms of 'day-over-day' change, but more telling is the fact that both MBS and Treasuries are just inside Friday's weakest levels.  Perhaps we'll see some technical support there to complement the technical resistance just seen at Friday's better levels.

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
102-16 : -0-02
FNMA 3.5
105-05 : -0-02
FNMA 4.0
106-29 : -0-02
Treasuries
2 YR
0.5320 : +0.0199
10 YR
1.8970 : +0.0317
30 YR
2.5650 : +0.0471
Pricing as of 4/20/15 1:39PMEST
Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:54PM  :  ALERT ISSUED: Pressure Continues; Reprice Risk Makes a Stronger Showing
10:41AM  :  ALERT ISSUED: Negative Reprice Considerations For a Lender or Two
9:57AM  :  Quiet Morning Trading Inside Friday's Ranges
9:12AM  :  Simplified Table of Fannie LLPA/AMDC Changes
Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Sung Kim  :  "sept 15th deliveries"
Steven Byer  :  "When do they take affect?"
Matthew Graham  :  "
MBS Live Update Issued
Simplified Table of Fannie LLPA/AMDC Changes"
Gus Floropoulos  :  "I cant see a scenario where fed increases dont spook the market"
Jason Anker  :  "I assumed i took it out of context, guess not."
Matthew Graham  :  "that last one is still fascinating. A few years ago, that would have been a scandalous suggestion. It runs the risk of implying: "if you have a big enough tantrum, you can get what you want.""
Matthew Graham  :  "RTRS - FED'S DUDLEY REPEATS THAT RATE RISES WILL DEPEND IN PART ON MARKET REACTION"
Matthew Graham  :  "RTRS - FED'S DUDLEY: RATE HIKE WILL LIKELY BRING MARKET STRESS, TURBULENCE"
Matthew Graham  :  "RTRS- FED'S DUDLEY: U.S. ECONOMY HAS FURTHER TO GO TOWARD EMPLOYMENT, INFLATION GOALS"
Matthew Graham  :  "RTRS - FED'S DUDLEY: TIMING OF RATE HIKE IS DATA DEPENDENT; 'WE HAVE TO SEE WHAT UNFOLDS'"