MBS Live Recap: Bonds Remain Under Pressure, But MBS Outperformed
Bonds Remain Under Pressure, But MBS Outperformed
Bonds managed to remain sideways during AM hours. In fact, MBS were as much as an eighth of a point higher versus opening levels by 11:30am. The tone soured in the PM hours. 10yr yields ultimately crested 1.48% and MBS lost nearly a quarter of a point day over day. The weakness is decidedly focused on Treasuries due to the auction cycle, corporate issuance, and the "risk-on" momentum in the broader market.
-
Fed MBS Buying 10am, 11:30am, 1pm
moderately weaker overnight with losses extending into the 9am hour. Sideways since then with 10yr yields up 2.4bps at 1.456 and MBS down an eighth of a point.
A bit of weakness heading into the 1pm hour. MBS near lows, down 5 ticks (.16) and 10yr near highs, up 3bps at 1.463.
More new highs for 10yr yields, now up 5bps at 1.484%. MBS are unchanged from the last update.
Just a bit more weakness to end the day. MBS now down a quarter point at new lows of 102-04 (102.125). 10yr right in line with last update. Illiquidity is making the MBS losses look a few ticks bigger than they are, at times.