• European traders were month-end sellers, pushing rates higher overnight
  • US bond markets battled back during the domestic session
  • Treasuries were green at the 3pm close and MBS are still green, barely
  • Not much impact from economic data, although data was generally supportive of longer-term themes (slowing economy)

Bond markets had a completely inoffensive month-end session with Treasuries and MBS ending up essentially unchanged versus yesterday's excellent (relative) closing levels.  When compared against 3 weeks ago, current levels leave a bit to be desired, but compared to where it looked like we were heading at the beginning of this week, we'll take it!

10yr yields have moved right back to the upper edge of their previous range (1.84%) and managed to trade below there late this afternoon.  

Next week will be critical--not just because of the economic calendar, but mainly because it will let us know how much of this week's improvements were driven by "month-end" bond-buying.  If there is a big distortion, we'll know it right away on Monday.  If bonds continue holding near current levels or better, it's "game-on" for re-entering the awesome, low range that we enjoyed in February and early April.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.0
102-15 : -0-01
Treasuries
10 YR
1.8350 : -0.0030
Pricing as of 4/29/16 4:40PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:20AM  :  Bonds Recovering From European Influence After Data
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Timothy Baron  :  "I'm leaning toward locking. 1.84 seems fairly firm, Monday is a new month, and we have triangles on short and long term charts which may portend a strong break one way or the other next week. For me it feels like it's time to be conservative and lock in recent gains. Can renegotiate later if needed."
Stacey Britton  :  "I will continue to float over the weekend. My PAR pricing has moved much this week at all."
Victor Burek  :  "today might be good though as this is month end, not sure what next month brings"
Victor Burek  :  "not a fan of locking on fridays"
Matt Hodges  :  "we were also -4 this morning around pricing"
Lawrence Gale CPA  :  "We saw numerous improvements yesterday. .125 - .25 depending on investor and when they put out their morning rate sheets. When I checked this morning, I was an .125 worse than yesterday at 5:00PM"
Matt Hodges  :  "i never expect anything on Fridays"
Clayton Sandy  :  "question on what everyone saw with their rates this morning? We didn't improve yesterday during the day so I expected a bit more this morning, but only got 1bps better. Just wondering what people saw"