• bond markets took a hit overnight and never fully recovered
  • Yields topped out heading into the NYSE open and again after the auction
  • 30yr auction was a bit rough, but not a game-changer
  • Echoes of bigger moves in oil/stocks seen in bonds

Today ended up being uneventful for bond markets, with yields continuing to coast sideways in the 1.7's, a range that 10yr Treasuries most recently moved into more than a week ago.  In other words, not much has happened since then apart from some intraday volatility.

Today's overnight session saw a quick bout of selling pressure led by European bond markets.  This left US bond markets to begin their day in negative territory, and selling pressure continued from there.  Once the NYSE opened, bonds caught their breath and managed to hold under yesterday morning's highest yields.  

The recovery lasted through the European close and bonds weakened, once again, heading into the 30yr bond auction.  The auction itself wasn't great, but markets were just as happy to be done with supply for the week.  After some token weakness, yields ultimately made it back under pre-auction levels for the close.

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
102-20 : -0-03
Treasuries
10 YR
1.7480 : +0.0190
Pricing as of 5/12/16 5:09PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:55PM  :  ALERT ISSUED: And Now Reprice Risk IS a Potential Consideration
1:20PM  :  ALERT ISSUED: There is No Organic Reprice Risk At The Moment
10:14AM  :  Bonds Bounce Back After Overnight Weakness
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "RTRS - U.S. SELLS $15 BLN 30-YEAR BONDS AT HIGH YIELD 2.615 PCT, AWARDS 17.76 PCT OF BIDS AT HIGH"
Matthew Graham  :  "RTRS - HIGH YIELD AT LATEST 30-YEAR BOND SALE WAS LESS THAN 1 BASIS POINT ABOVE ITS 1 P.M. WHEN-ISSUED LEVEL - REUTERS DATA"
Matthew Graham  :  "RTRS - U.S. 30-YEAR BOND BID-TO-COVER RATIO 2.19, NON-COMP BIDS $15.34 MLN"
Matthew Graham  :  "30yr expectation at 2.604. Average refunding auction is 1.43bps higher, and average bid-to-cover is 2.24. (confusing? see: Where can I find definitions to abbreviations and other Terminology, Jargon? )"
Scott Lushing  :  "MG is this bond auction important or no? what BTC should we be looking for?"