MBS & US Treasury Markets
7/30 2:13:10PM EST : Delayed Data
  • No Change to Rates
  • Bowman and Waller dissented (expected)
  • No major verbiage changes

Bonds were already recovering AM losses ahead of the Fed announcement and they haven't moved much afterward.  MBS are still down 1 tick (.03) on the day and 10yr yields are up 2.4bps at 4.345. 

The only verbiage change was MILDLY rate-friendly in that it characterized economic growth as "moderating" whereas it previously said it was "continuing to expand at a solid pace.  Tangentially, the Fed dropped a line about economic uncertainty diminishing. 

The net takeaway is, again, MILDLY rate-friendly, and that jives with the inoffensive trading reaction. 

09:29 AM

A hair weaker overnight with additional selling after data.  MBS down 5 ticks (.16) and 10yr up 5bps at 4.373

12:53 PM

A bit of resilience heading into Fed announcement.  MBS down 2 ticks (.06) and 10yr up 4.3bps at 4.365

02:08 PM

very small, friendly reaction to Fed.  MBS down 1 tick (.03) and 10yr up 2.6bps at 4.348