Simple, Boring, Half Point Rally in MBS

There won't be too many days with a half point MBS rally that are as boring as Friday.  None of the economic data was very interesting or even exceptionally relevant.  Most of the day's motivation was set in the overnight session by a big move lower in European bank stocks and a sympathetic rally in sovereign debt.  Treasuries were, in turn, sympathetic to EU bonds and MBS expressed some sympathy for Treasuries.  

Econ Data / Events
    • Industrial Production
      • 0.0 vs 0.2 f'cast
      • last month revised to 0.3 from 0.0
Market Movement Recap
09:37 AM

Flight to safety led by EU bank stocks in late overnight trading.  10yr down almost 12 bps at 3.46.  MBS up roughly 3/8ths of a point.

12:46 PM

Best levels of the day at noon and losing some ground since then.  MBS still up 3/8ths, but down 6 ticks from highs (.19).  10yr down 17bps on the day at 3.408.

04:38 PM

Slight give-back in Treasuries, but not enough to ruin anyone's day.  10yr down 14bps at 3.44.  MBS up half a point.