MBS Live Recap: Weaker Today, But Stronger vs Last Week. Stocks in Control

Fri, May 13 2022, 3:47 PM

Weaker Today, But Stronger vs Last Week. Stocks in Control

Blaming shares for motion within the bond market (and vice versa) is normally a cop out, however sometimes related.  The latter is arguably the case this week as Monday noticed a giant drop in shares to the bottom ranges in over a 12 months (relying on the index). It took bonds some time to catch on, however as soon as they did, they spent a lot of the remainder of the week shifting the identical path.  Today was no exception, however the truth that shares have been rising pretty shortly meant that bonds have been underneath strain as nicely.  Today’s losses apart, each MBS and Treasuries are heading out at a lot stronger ranges in comparison with final Friday.

  • Fed MBS Buying 10am, 11:30am, 1pm

  • Import Prices 0.0 vs 0.6 f’forged. 2.9 prev
    Export Prices 0.6 vs 0.7 f’forged. 4.1 prev

  • Consumer Sentiment …59.1 vs 64.0 f’forged
    Current Conditions ……63.6 vs 70.5
    Current Conditions lowest since March 2009
    inflation expectations unchanged

08:51 AM

Modest promoting at begin of Asian buying and selling hours, then flat.  Modest promoting at begin of European hours, then flat.  Net impact: 10yr up 5bps at 2.906.  UMBS 4.0 down virtually 1 / 4 level, however liquidity continues to be missing (i.e. losses won’t be that unhealthy by the point consumers and sellers resolve their sport of Marco Polo.

11:23 AM

Some weak spot after the 9:30am NYSE open, however bouncing again to earlier ranges now.  MBS down simply over an eighth and 10yr yields up 5bps at 2.906.

02:04 PM

Nice restoration into the midday hour, then again to weakest ranges by 1pm.  Now drifting with MBS down 6 ticks (.19) and 10yr up 6.5 bps at 2.92%

03:36 PM

Sideways close to weakest ranges. Today was all in regards to the bounce in shares and a modest (within the greater image) give-back in bonds.

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