Broker Owner
Ingram Company
License:
CA DRE: 01226769
NMLS: 371141 / 358879
Broker Owner
Ingram Company
License:
CA DRE: 01226769
NMLS: 371141 / 358879
MBS & US Treasury Markets
12/6 5:29:00PM EST : Delayed Data

After spending most of the day treading water at slightly weaker levels, MBS are back in the green to the tune of roughly one eighth of a point.  

2pm served as a jumping-off point for a small but noticeable rally in Treasuries.  10yr yields dropped from 3.56 to 3.513 during that time (7bps lower on the day).

Compelling justifications are hard to come by.  There's some talk of equities losses, but while there is correlation with bonds, the magnitude and timing leave something to be desired (i.e. stocks and bond yields fell together, but there was nothing special about the stock selling at 2pm, which is when bonds moved more sharply lower).

2pm-3pm is characteristically a more volatile time of day, often suspected of hosting outsized high-frequency and other algo trades.

We can also point to an absence of any new corporate investment grade issuance.  

Either way, yields are currently respecting the range floor at 3.50 and today's move isn't any bigger than most recent days.  It just happened all at once, more or less.

08:43 AM

Treasuries initially weaker amid risk-on trade in Asia. Rallied back with Europe.  10yr down 3.7bps at 3.546.  MBS are anywhere from unchanged to an eighth of a point stronger depending on liquidity

01:41 PM

10yr sideways and narrower, currently down 2.2bps on the day at 3.561.  MBS down roughly an eighth and also generally sideways.

02:42 PM

MBS moving into positive territory now, currently up an eighth of a point.  10yr down 6.8bps at 3.513.  Heavy selling in stocks contributing.  

04:09 PM

Mostly holding the afternoon's mystery gains.  MBS up an eighth on the day.  10yr down 5.5 bps at 3.528.

Broker Owner
Ingram Company
License:
CA DRE: 01226769
NMLS: 371141 / 358879