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Weaker overnight with Europe and additional selling after Jobless Claims data. MBS down an eighth and 10yr up 2.6bps at 4.181
Sideways near opening levels. MBS down an eighth and 10yr up 1.9bps at 4.174
Same same. MBS down 3 ticks (.09) and 10yr up 2.7bps at 4.182
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The newswire in question:
TRUMP: INSTRUCTING MY REPRESENTATIVES TO BUY $200 BLN DOLLARS IN MORTGAGE BONDS
The reaction:
We don't know exactly how this will play out yet, but MBS traders are clearly willing to react this afternoon. Based on the fact that there's almost exactly $200bln of balance sheet room for the GSEs, this doesn't seem like a random, spur of the moment comment.