Strong Showing Overall Despite Late Day Weakness

As noted in this morning's commentary, the key source of inspiration overnight was Austria's covid lockdown announcement.  Yields plunged in response and didn't do much else for the rest of the day.  MBS, on the other hand, happened to slide toward weaker levels throughout the day, but we're not reading too much into that for reasons discussed in today's video.

Econ Data / Events

  • Fed MBS Buying 10am, 11:30am, 1pm

  • Jobless Claims 268k vs 260k f'cast, 269k prev

  • Philly Fed Index 39.0 vs 24.0 f'cast, 23.8 prev

Market Movement Recap
08:27 AM

Much stronger overnight amid European covid surge and Austrian lockdown news.  10yr down 5bps at 1.538 and MBS up nearly a quarter point.

12:08 PM

Fairly flat since the open.  One brief blip in a weaker direction on news that Germany won't impose covid lockdowns.  10yr still down more than 5bps.  MBS up 5 ticks (.16).

01:11 PM

A bit of weakness relative to the highs.  MBS still up an eighth but down an eighth from the highs.  10yr yields down 4.8bps on the day now at 1.539.

02:44 PM

New lows for MBS (still up 0.09), but 10yr yields remain mid-range, down 5bps at 1.536. No specific, obvious market movers in play at this hour.