MBS MID-DAY: Bond Markets Unfazed by NYSE Outage (or Anything, Really)

By: Matthew Graham •

Today's NYSE outage is all anyone can talk about at the moment, but markets haven't really paid it much attention.  Keep in mind that a majority of trading happens elsewhere.  If the CME and NYSE were down simultaneously, it would be a much bigger deal, but even then, cash trading in Treasuries and MBS would continue.

To put the impact in perspective, let's consider S&P futures, the traders' choice when it comes to "the stock market."  Prices were as low as 2043 overnight, and had been at domestic-session lows of 2047 before the NYSE outage.  After the outage, prices briefly returned to 2043 and are now back up to 2047.  Pretty ho-hum, especially in light of yesterday's 2035 lows.

Bond markets have been even less interesting, holding a narrow range today that rests well inside yesterday's highs and lows.  On a positive note, that narrow range is at least in slightly stronger territory than yesterday's closing levels--thus making for green on the screen and rate sheet improvements.

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
100-03 : +0-08
FNMA 3.5
103-12 : +0-06
FNMA 4.0
106-04 : +0-04
Treasuries
2 YR
0.5730 : -0.0160
10 YR
2.2280 : -0.0270
30 YR
3.0050 : -0.0300
Pricing as of 7/8/15 1:00PMEST
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