With no relevant market movers on the US calendar today, it was notable to see just how willing the bond market was to react to overseas data. Specifically, inflation came in hotter in Spain. This sent European yields sharply higher overnight and US yields followed at a bit less than half the pace. While we wouldn't say the pace was extreme, it was nonetheless surprising relative to the motivation. It's an important reminder about how skittish bonds may be as the week progresses with bigger ticket data and central bank announcements.
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- No significant scheduled data
Weaker overnight after Spanish inflation data. Stronger so far in US trading. 10yr still up 3.5bps at 3.542. MBS down a quarter point.
Sideways and choppy since the start of US trading, but still weaker on the day. 10yr up 3.7bps at 3.544. MBS down 10 ticks (.31).
Still sideways. Trading levels right in line with last update.
Some MBS-specific weakness now, partly fueled by illiquidity. 4.5 and 5.0 coupons both down just over 3/8ths of a point and roughly 6 ticks (.19) from intraday highs. 10yr still in the 3.54% range.
MBS Market Alerts
