MBS OPEN: Unchanged to Slightly Improved
Yesterday's Recap
- MBS woke up the morning after without the urge to gnaw its arm off. That sentiment still holding.
- Another well received tsy auction, this time 7yrs.
- Tsy's rallied big, MBS lagged a bit by comparison despite earning facemelter status from a pure price perspective.
The AM So Far...
- Until a few moments ago, tsy's had been drawing a line in the sand at 3.53 on the 10yr that was more clearly delineated than that caused by a few rounds of golf and Art Cashin's sunglasses.
- Incomes and outlays show income rose compared to spending. Spending came in at the consensus of 0.3, but incomes crushed their 0.3 consensus with a 1.4 read
- Consumer sentiment yet to come. MBS and tsy's got a miniature boost from recent data.
- Anything can happen
Charts
2s vs. 10s: 240bps
6/25 EFFECTIVE FED FUNDS: -0.02 to 0.19 from 0.21
LIBOR FIXINGS
O/N LIBOR: -0.0088 to 0.2650 from 0.2738
1 MONTH: +0.0025 to 0.3100 from 0.3075
3 MONTH: -0.0037 to 0.5975 from 0.6012
6 MONTH: -0.0187 to 1.0950 from 1.1137
1 YEAR: -0.0538 to 1.5912 from 1.6450