Snowball Selling Pushes 10yr Toward 2.4%, Mortgage Rates to High 4's

The global market jumped on the bandwagon of Fed policy "repricing"--a short word for the process of adjusting today's interest rates to reflect a Fed rate hike campaign that now includes 2 consecutive 50bp hikes in the next 2 Fed meetings as opposed to the 25bp hikes previously seen as ironclad.  Domestic traders had no reason to fade the move, especially with stocks rising more than 1% (in other words, only rates are freaked out by Powell and his kettle of ultra hawkish hawks).  

Econ Data / Events
Market Movement Recap
08:30 AM

More weakness overnight as rate hike expectations continue to ramp up.  10yr up 5bps at 2.348 and 3.5 UMBS down a quarter point at 100-00.

12:32 PM

MBS sold off heading into the 10am hour, but have bounced back to AM levels, still down a quarter point.  10yr is up 7bps at 2.368% after being as high as 2.39%.  No new market movers in play, just momentum.

02:55 PM

Fairly calm and somewhat resilient after initial morning weakness.  MBS at highs of the day, down "only" 6 ticks (.19).  10yr yield up "only" 7bps, in line with lowest levels since 9am (2.366).

04:26 PM

Back toward weaker levels in the last hour of trading with MBS down 12 ticks (.375) and 10yr yields up 9bps to 2.386.