MBS Live Recap: Closer Look at Stocks vs Rates
Bonds Pull Back, But It's Still a Waiting Game
Despite some modest weakness to begin the day, bonds remain smack dab in the center of their recent range. We've officially begun the waiting game.
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11:30-11:50 AM (ET) - Fed 30yr UMBS Buying
Bond yields and stock prices were inconsequentially higher overnight and remained very flat throughout Asian and European sessions. MBS starting the day 2 ticks (.06) weaker. 10yr yields up 1.3bps at .653.
Weakness accelerated into the 10am hour, roughly following a stock surge. Bonds seem to be finding support for now though. 10yr yields up 2.3bps at .663 and UMBS 2.0 down an eighth on the day.
Solid defensive stand continues for the bond market after strong 10yr auction. MBS at highs of day, up just a hair. 10yr yields near lows of day, but still a bit weaker vs yesterday.