Abandon Hope, All Ye Who Float Overnight

We're putting in for permits to build our own Pirates of the Caribbean ride at MBS Live world headquarters.  There will be more waterfalls, and they'll be sharper.  We're mapping the slope based on bond prices, after all.  We'll even keep with some familiar elements such as the "abandon hope" sign.  That was certainly the bond market's message to floaters today.  See the Day Ahead commentary for more thoughts on the move and the Lock/Float section for specific thoughts on strategy.  

Econ Data / Events

  • Fed MBS Buying 10am, 1130am, 1pm

  • Philly Fed 51.8 vs 23.0, 23.1 Prev

  • Jobless Claims 770k vs 700k f'cast, 725k prev

Market Movement Recap
08:36 AM

Bonds crushed overnight in massive volume.  10yr yields up to 1.754 at highs, 1.74% currently.  MBS off 3/8ths of a point. 

01:26 PM

VERY calm and sideways after  the opening weakness.  Nothing to report other than modestly refreshing ground-holding.

04:04 PM

Today is setting some sort of record for the most striking juxtaposition of overnight weakness with domestic-session stability. Treasuries tried to rally a bit as stocks slumped into the NYSE close, but that didn't last long.  Yields are 7+bps higher at 1.72%.  MBS are unchanged from the last update, holding just about half a point weaker on the day.