MBS Live Recap: Bonds Hold Decent Gains to Start New Week

Mon, May 16 2022, 4:01 PM

Bonds Hold Decent Gains to Start New Week

After combined buying and selling in a single day, bonds started the day within the US at comparatively unchanged ranges earlier than rallying all through the morning hours.  There has been a very good quantity of correlation between shares and bond yields over the previous week.  Oil costs joined that bandwagon on Thursday and the correlation continued proper as much as the 8:20am CME open.  At that time, new trades for the brand new week together with world progress considerations helped bonds maintain their floor regardless of extra of a flat efficiency in shares (and a rally in oil).  The day lacked any massive, apparent market motivations.  Traders did not take any dangers pushing technical boundaries, and regardless of the rally, as a substitute appeared that they had been settling right into a broader sideways vary to attend out the standoff between inflation, central financial institution insurance policies, and world progress considerations.

  • Fed MBS Buying 10am, 11:30am, 1pm

  • Empire State Manufacturing -11.6 vs 17.0 f’solid, 24.6 prev

08:48 AM

Initially stronger in a single day on Asian market weak spot (China progress fears).  Hawkish ECB = promoting stress in European hours, however nonetheless barely stronger vs Friday.  10yr down 2bps and MBS up one tick (0.03).

10:20 AM

Additional beneficial properties after the 9:30AM NYSE Open.  Some inventory momentum spilling over to bonds, however EU bonds serving to US bonds keep away from following shares as they bounce again as much as opening ranges.  10yr down 5.4 bps at 2.873% and UMBS 4.0 up 6 ticks (.19) at 99-18 (99.56)

01:25 PM

Gains leveled off after 11am and bonds have been sideways to barely weaker since then (however nonetheless in optimistic territory on the day).  10yr yields are down 5bps at 2.879 and 4.0 UMBS are up 5 ticks (.16).

03:14 PM

Yields and shares topped out at 2:30pm.  Both have been shifting within the different course since then.  10s are again right down to 2.88 after buying and selling over 2.89 briefly.  4.0 UMBS are up 1 / 4 level now on the highs of the day.

 Download our cellular app to get alerts for MBS Commentary and streaming MBS and Treasury costs.


Please enter your comment!
Please enter your name here