MBS OPEN: Better Than Expected Data Pushes Rates Higher
Last Week....
830am data was better than expected....following the release prices of the UST10YR note fell pushing yields from 3.52% to 3.56%. MBS coupons are lagging the reactions of TSY traders and yield spreads have tightened as MBS outperforms benchmark TSYs...but MBS prices nonetheLess worse at the open.
Consumption data read -0.1%...economists were expecting -0.2% after a revised for the worse -0.3% print in March.
Core PCE (inflation) read +0.3%...economists were expecting a reading of +0.2% following the +0.2% print in March.
Personal Income read +0.5%...economists were expecting -0.2% following a revised for the better -0.2% March number.
At 10am we get Construction Spending (expecting -1.30% following +0.30% in March) and US ISM manufacturing data (expecting 42.0 after 40.1 in April)
UST10YR/FN45 Yield Spread: +83.37bps
UST5YR/FN45 Yield Spread: 198.65bps
2s/10s: 260.29 bps
5/29 EFFECTIVE FED FUNDS: +0.02 to 0.19 from 0.17
LIBOR FIXINGS
O/N LIBOR: -0.0088 to 0.2625 from 0.2713
1 MONTH: +0.0037 to 0.3200 from 0.3162
3 MONTH: -0.0063 to 0.6500 from 0.6563
6 MONTH: -0.0063 to 1.2337 from 1.2400
1 YEAR: -0.0063 to 1.5938 from 1.6000