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Slightly stronger overnight, but losing ground since 9:30am NYSE open. MBS unchanged and 10yr up 1.1bps at 4.12
Bouncing back from AM weakness. MBS up 1 tick and 10yr up 0.9bps at 4.118
no reaction to Fed Minutes. MBS unchanged and 10yr down 0.4bps at 4.106
Weakest levels of the day for MBS, down 2 ticks (.06). 10yr up 1.3bps at 4.123
Heading out near weakest levels. MBS down 3 ticks (.09) and 10yr up 1.9bps at 4.128
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Shorter term bonds are losing ground this afternoon following the Fed Minutes release. The key issue there was the confirmation that "many" Fed meeting participants didn't think a December rate cut would be appropriate. Contrast that to "several" who said it likely would be appropriate.
At times like this, short term bonds underperform because they have more in common with the Fed Funds Rate. MBS are now down 2 ticks (.06) on the day and an eighth of a point from the mid-day highs. The jumpiest lenders could be considering negative reprices.
10yr yields are up less than 1bp on the day at 4.119.