Bonds Surprisingly Resilient After Last Week's Scare

After last week's somewhat scary move higher in rates, the bond market has shown a decent amount of resilience so far this week as the jury remains out in the case of covid vs the economy.

Econ Data / Events

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

  • Consumer Price Index 0.6 vs 0.5 f'cast, -0.1 prev

  • Core Annual CPI 1.2 vs 1.1 f'cast, 1.2 prev

Market Movement Recap
08:22 AM

Stocks and bonds both mostly flat overnight, like yesterday.  Slight edge toward "risk-on" with stocks just barely stronger and bonds just barely weaker.  2.0 UMBS starting the day down a hair at 102-22 (102.69).

10:32 AM

MBS have bounced back nicely after opening slightly weaker.  Both Treasuries and MBS improved at 8:30, but MBS have kept the good times rolling, now up nearly a quarter of a point.

02:12 PM

MBS prices have come off the boil from mid-day highs.  2.0 coupons are down nearly an eighth from those highs at 102-29 (102.91).  They were briefly as high as 103.  10yr yields are holding sideways in slightly stronger territory despite stocks up more than half a percent.