MBS Live Recap: Stock Lever Cuts Both Ways as Yields Bounce Higher

Mon, May 23 2022, 4:37 PM

Stock Lever Cuts Both Ways as Yields Bounce Higher

While the good points seen within the bond market over the previous 2 weeks had been definitely welcome, we had doubts about their sustainability given the circumstances.  Specifically, they relied on a certain quantity of weak point within the inventory market, or so it might appear.  As of Monday afternoon, it nonetheless appears the identical! S&Ps bounced again roughly 1.8% by the 1pm shut and 10yr yields adopted, transferring virtually 8bps greater by the identical time.  4.0 MBS coupons misplaced 3/8ths of a degree.  All this regardless of no new information. 

09:06 AM

Slightly weaker out of the gate in Asia.  Some traction early in EU session, then extra weak point after German IFO information and LaGarde fee hike feedback.  10yr up virtually 6bps at 2.846 and MBS down 1 / 4 level.

12:55 PM

Gains on the 9:30am NYSE open adopted by losses as shares get better.  10yr up 7 bps at 2.86 and MBS down slightly below a 3rd of a degree.

03:51 PM

Bonds had been pretty flat within the early afternoon hours however simply misplaced a bit extra floor with MBS hitting new lows for the day.  4.0 coupons down 3/8ths+.  10yr not an excessive amount of greater than the final replace (2.862).  

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