Another Green Day But MBS Underperform

Bonds rallied today with 10yr yields dropping more than 6bps by the 3pm CME close.  That's the type of improvement that normally makes for a nice day of mortgage market improvement, but today, mortgage rates were just barely lower.  Blame MBS underperformance and relatively conservative lender pricing strategies heading into the weekend before an important Fed meeting.  The other "yeah but" is the fact that the bond rally received a lot of support from a massive stock market sell-off.  

Econ Data / Events
Market Movement Recap
08:34 AM

Yesterday's late-day gains extended right at the start of the overnight session and bonds have been mostly flat since then.  10yr yields down 3.2bps at 1.779 and MBS up 2 ticks (0.06), but still searching for full liquidity.

10:41 AM

Additional gains into 10:00am hour, largely in line with stock losses.  Small bounce since 10:20am.  10yr down 5bps at 1.76 and MBS up just under an eighth of a point.

03:06 PM

Stock selling continues benefiting bonds.  10yr down 6.7bps t 1.744%.  3.0 UMBS up 6 ticks (.19) at 102-06 (102.19).