Uneventful Day; MBS Underperform
Uneventful Day; MBS Underperform
It's not uncommon to see MBS outperform their Treasury benchmarks in the run up to a round of weekly Treasury auctions only to underperform when the auction cycle wraps up. That underperformance (or rather, Treasury outperformance) was on full display today with MBS losing about a quarter point while 5yr notes lost about half as much. While bonds are slightly closer to the weaker end of the recent range, they're still very much inside it.
Moderately weaker so far with 5.0 coupons down 6 ticks (.19) and 10yr yields up 2.6bps at 4.143
flat since last update. MBS down 6 ticks (.19) and 10yr up 1.9bps at 4.136
Slightly weaker bond auction = slightly weaker response. MBS down 7 ticks (.22) and 10yr up 2.9bps at 4.146
Uneventful Day. MBS Underperform
| Time | Event | Period | Actual | Forecast | Prior |
|---|---|---|---|---|---|
| Thursday, Oct 09 | |||||
| 8:30AM | Fed Chair Powell Speech | ||||
| 8:35AM | Fed Bowman Speech | ||||
| 12:00PM | WASDE Report (%) | ||||
| 12:45PM | Fed Barr Speech | ||||
| 1:00PM | 30-Yr Bond Auction (bl) | 22 | |||
| 1:00PM | 30-Year Bond Auction | 4.734% | 4.651% | ||
| 3:45PM | Fed Bowman Speech | ||||
| Friday, Oct 10 | |||||
| 12:00AM | Roll Date - UMBS 30YR | ||||
| 9:45AM | Fed Goolsbee Speech | ||||
| 10:00AM | Oct Consumer Sentiment (ip) | Oct | 54.2 | 55.1 | |
| 10:00AM | Oct Sentiment: 1y Inflation (%) | Oct | 4.7% | ||
| 10:00AM | Oct Sentiment: 5y Inflation (%) | Oct | 3.7% | ||
| 10:00AM | Oct U Mich conditions | Oct | 60 | 60.4 | |
| 1:00PM | Fed Musalem Speech | ||||
| 2:00PM | Sep Federal budget,(on hold, shutdown) (bl) | Sep | $50.0B | $-345B | |
