Recap of Yesterday
- Import/Export Prices and Consumer Sentiment both read unfriendly to bonds..
- But bonds rallied throught he AM nonetheless.
- 12 noon, like clockwork, marked the time for all sides of the market to punch out for the weekend
- From 8am to noon, MBS up 6 ticks, stocks flat.
- From Noon to close, MBS down 8 ticks, stocks down 2 pts in s&p.
- All in all, 8 tick rally on the shortened week, moving from 101-16 to 100-24
So far this AM
- Long end the of yield curve not doing so well with 10's down 12 ticks (3.39 yield) and 30 yr down 26 ticks (yield 4.23)
- As usual, that translates negatively to lower coupon MBS. 4.5 down 9 ticks at the moment, worst levels of the morning.
- Went out of our way Friday to show disconnect between Friday losses and the rest of the weekly trend.
- Noted only exception would be if weekend coincides with trend reversal
- No scheduled Econ data today
- 3 instances of Fed speak with Duke, Lacker, and Yellen at 835, 1230pm. and 350 pm respectively
- various support can be seen on daily chart below
- most important line in terms of guaging impact of continued losses is not on the chart, but be aware of it: previous long term high at 100-13.
- Trend reversal won't get any afternoon love, but if trend is not reversing, rebounds of varying amounts might materialize as the day progresses.
MBS Market Alerts
