- Active corporate bond issuance puts pressure on Treasuries
- MBS only lose 2 ticks
- lower oil prices were no help
- European bond markets still having an effect
As is the case with so many Mondays, today could easily have been an unofficial 3rd day of the weekend, but with a bit more hustle and bustle. Don't mistake that bustling for anything important though. Trading had the distinct and sterile feeling that can only come from compulsory trades related to corporate bond issuance and beginning-of-week position taking.
Europe is definitely still a consideration for US bond markets, even though the European Central Bank Announcement is in the rearview. This has been and will continue to be the case for the foreseeable future. This morning, it didn't help as European yields spiked around 8:30am, pulling Treasury yields up in the process and bringing MBS prices back into the red.
From there, Treasuries continued trending toward slightly weaker levels for the rest of the day while MBS managed to avoid making any new lows, ending just 2 ticks weaker while 10yr Treasuries lost 7 ticks in price (rising 2.4bps in yield to 1.915).
MBS | FNMA 3.0 102-00 : -0-01 | ||
Treasuries | 10 YR 1.9150 : +0.0270 | ||
Pricing as of 4/25/16 5:33PMEST |