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20yr Treasury Auction to The Rescue
20yr Treasury Auction to The Rescue
The day began with a bond market that looked like it might take an opportunity to retrace a small portion of the gains seen in recent days. Even at its worst, it wasn't that threatening (i.e. 10yr yields never rose above 3.98%). But any notion of a pull-back was effectively erased at 1pm with the results of the 20yr bond auction. Bids totaled 2.73 times the auction amount--right in line with the 6-auction average and the yield came in 1.3bps lower than expected. A 20yr auction wouldn't normally be an obvious market mover, but the muted range and dearth of data made the reaction more noticeable. With that, bonds moved back into positive territory on the day and held steady through the 3pm close.
Losing some ground after opening stronger. MBS down 2 ticks (.06) and 10yr up 0.5bps at 3.974
Decent recovery after 20yr auction. MBS up 1 tick (.03) and 10yr down 1.8bps at 3.952
Just off best levels. MBS unchanged and 10yr down 1.5bps at 3.955
20yr Auction to The Rescue
| Time | Event | Period | Actual | Forecast | Prior |
|---|---|---|---|---|---|
| Wednesday, Oct 22 | |||||
| 7:00AM | Oct/17 Mortgage Market Index | Oct/17 | 316.2 | 317.2 | |
| 7:00AM | Oct/17 MBA Refi Index | Oct/17 | 1214.7 | 1168.0 | |
| 7:00AM | Oct/17 MBA Purchase Index | Oct/17 | 157.3 | 166.0 | |
| 10:30AM | Oct/17 Crude Oil Inventory (ml) | Oct/17 | -0.961M | 1.2M | 3.524M |
| 1:00PM | 20-Yr Bond Auction (bl) | 13 | |||
| Thursday, Oct 23 | |||||
| 8:30AM | Oct/11 Continued Claims (on hold, shutdown) (k) | Oct/11 | 1930K | ||
| 8:30AM | Oct/18 Jobless Claims (on hold, shutdown) (k) | Oct/18 | 223K | ||
| 10:00AM | Sep Exist. home sales % chg (%) | Sep | -0.2% | ||
| 10:00AM | Sep Existing home sales (ml) | Sep | 4.1M | 4M | |
| 1:00PM | 5-Yr Note Auction (bl) | 26 | |||
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