Rising Rates Thwarted By Coronavirus Concerns

Stop us if you've heard this one before, but rates are low due to an unprecedented global emergency.  Unless coronavirus situations deteriorates significantly, it's only fair for rates to gradually push back toward higher levels.  But when case counts spike, bonds are still willing to respond.

Econ Data / Events

  • 11:30-11:50 AM (ET) - Fed 30yr UMBS Buying  

  • New Home Sales: 676k vs 640k f'cast, 580k prev (+16.6%)

Market Movement Recap
08:24 AM

Bonds WERE slightly stronger as stocks weakened overnight session.  10s made it to .699, but yields bounced higher in early domestic trading, now up to .73%. MBS are hitting their first trades about 1-2 ticks (.03-.06) weaker.

09:59 AM

Yields are surging (relatively) lower as stocks slump at the 9:30am NYSE open.  10s now down 1.3bps on the day.  UMBS 2.0 turning positive, up 1 tick (0.03) on the day, trading just under 102.

11:47 AM

10yr yields are now down below the .69% floor as stocks sell-off aggressively.  MBS aren't moving nearly as much.  2.0 UMBS are up 1 tick (0.03) on the day at 101-29 (101.91).