MBS RECAP: Bonds Gain With Europe

By: Matthew Graham •

While oil prices did move lower in the overnight session, and while stock markets followed that move, bond markets were a bit more independent.  Specifically, European bond markets were in control today.  This wasn't due to any major revelation in European financial markets.  Rather, it was simply Europe that had the most volatile day, thereby impacting interdependent bond markets like the US.

To put an exclamation point on the European thesis, domestic bond markets (and stocks for that matter) bounced right as European bond markets closed.  Treasuries and MBS drifted sideways after that, but stayed in positive territory on the day.

See all of the above on the chart below (oil and stocks heading lower before bonds, US 10's finding inspiration in Germany's rally and backing off after the European close):

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
99-32 : -0-01
FNMA 3.5
103-03 : -0-01
FNMA 4.0
105-22 : +0-00
Treasuries
2 YR
1.0470 : -0.0120
10 YR
2.2250 : +0.0000
30 YR
2.9350 : -0.0050
Pricing as of 12/28/15 7:34PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:06AM  :  Bonds Improving Thanks to Europe
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "MH is on it"
Matt Hodges  :  "pass"
Victor Burek  :  "grade?"
Matt Hodges  :  "2 year bond auction in the woods and no one hears it."
Matthew Graham  :  "RTRS - U.S. 2-YEAR NOTES BID-TO-COVER RATIO 2.80, NON-COMP BIDS $164.19 MLN"
Matthew Graham  :  "RTRS - U.S. SELLS $26 BLN 2-YEAR NOTES AT HIGH YIELD 1.056 PCT, AWARDS 52.65 PCT OF BIDS AT HIGH"