Bonds Rally on Peace Deal Hopes

The day ended as it began: with bond yields and oil prices dropping in unison based on hopeful headlines surrounding the Iran war. Perhaps the market was in the mood for a rally because the headlines weren't particularly specific or compelling. Oil prices are closer to the middle of their range for the month of August whereas 10yr yields are closer to the low end of the range. This could suggest a bit of a willingness to rally on the part of the bond market, but sustaining the rally would require continued cooperation from oil as well as econ data.

Econ Data / Events
    • Case Shiller Home Prices-20 y/y (Jun)
      • 2.1% vs 1.7% f'cast, 1.6% prev
    • CaseShiller 20 mm nsa (Jun)
      • 0.4% vs -- f'cast, 0.9% prev
    • FHFA Home Price Index m/m (Jun)
      • 0.0% vs 0.2% f'cast, 0.3% prev
    • FHFA Home Prices y/y (Jun)
      • 2.3% vs -- f'cast, 2.2% prev
Market Movement Recap
09:32 AM

MBS up a quarter point and 10yr down 3.9bps at 4.659

01:40 PM

MBS up 10 ticks (.31) and 10yr down 5.5bps at 4.642

03:49 PM

MBS up 3/8ths and 10yr down 6.5bps at 4.632