President, Owner
River City Mortgage, LLC
MBS & US Treasury Markets
4/3 2:42:56PM EST : Delayed Data

While plenty of uncertainty remains over the finer points of Wednesday afternoon's tariff announcement, markets have heard enough to brace for impact on global trade. That "bracing" is being traded in the form of a flight to safety (sell stocks, buy bonds) that began yesterday and continued overnight. 10yr yields were already close to 4.0% before this morning's weaker ISM Services data, and have been inching closer since then. 

That said, the additional "inching" isn't really in response to ISM. Almost all of today's trading looks like an afterthought compared to yesterday's initial tariff reaction and the early overnight trading. 

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08:35 AM

Stronger overnight as tariff rally extends.  MBS up a quarter point and 10yr down 8bps at 4.044

01:01 PM

Sideways near highs.  MBS up 9 ticks (.28) and 01yr down 7.5bps at 4.048

President, Owner
River City Mortgage, LLC