Good Reminder That The Market Gets to Decide What Matters
Tue, May 26 2026, 3:32 PM
MBS Recap
Good Reminder That The Market Gets to Decide What Matters
MBS Recap Matthew Graham | 3:31 PM
Good Reminder That The Market Gets to Decide What Matters
If oil, Treasuries, stocks, and the rest of the market were completely closed, and if we could only estimate the probable impact of the news that's been available over the past 3 days, it would be hard to make that case that bond yields should be any lower than they were on Friday. In fact, some of the newswires (the ones citing various military clashes) might lead one to suspect yields should be higher. But here we are with 10s down more than 6bps and MBS up almost half a point just after 3pm ET--a good reminder that the market gets to decide what to make of the available news.
Overnight peace optimism gains holding. MBS up half a point and 10yr down 8bps at 4.482
11:02 AM
Off best levels. MBS up 3/8ths and 10yr down 5.6bps at 4.502
02:45 PM
Modest recovery. MBS up 14 ticks (.44) and 10yr down 6.1bps at 4.498
Lock / Float Considerations
5/26/26 -(unchanged) Bonds remain transfixed by war-related headlines and surprisingly receptive regardless of the quality of the news. The clear takeaway is that there's room to rally when peace is official, but also room to sell if the peace process falters.
