Perfectly Acceptable Conclusion to a Potentially Volatile Week
1 Hour, 54 Min ago
MBS Recap
Perfectly Acceptable Conclusion to a Potentially Volatile Week
MBS Recap Matthew Graham | 3:19 PM
Perfectly Acceptable Conclusion to a Potentially Volatile Week
With markets closed for the Juneteenth holiday on Friday, Thursday marked the end of the trading week. Considering the sell-off on Wednesday afternoon, the week had the potential to end on an uncomfortably volatile note. Instead, bonds pushed back nicely in the other direction--even though MBS didn't recoup as much of their losses as 10yr Treasuries. True, there is some sense of foreboding in the inability of 10yr yields to move below 4.42%, but all told, the week was actually surprisingly calm after factoring in Thursday's gains.
Bonds recover much of post-Fed sell-ff overnight, but mostly in the long end. 2yr yields lost more ground. 10yr yields are down 5bps at 4.446. MBS are up just under a quarter point.
10:24 AM
MBS up 9 ticks (.28) and 10yr down 6.3bps at 4.434
03:02 PM
MBS up 5 ticks (.16) and 10yr down 4.2bps at 4.454
Lock / Float Considerations
6/18/26 -Bonds recovered enough to mitigate the defensive takeaways from yesterday's Fed response. That said, until 10's can commit to a solid break below 4.42, it makes sense for risk-averse clients to remain defensive.
