Another day, another example of bonds ignoring the potentially negative cues while continuing to react from the positive ones. Correlation may not be causality, but stock losses have appeared to help facilitate bond buying on multiple occasions since last Friday. Today brought another example with stocks start to falter around 12:30ET following headlines regarding a 25% tariff rate on European imports. Even as stocks have moved off the lows heading into after hours trading, bond yields didn't follow. That leaves us at another "best since early December" level in both Treasuries and MBS.
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- New Home Sales
- 657k vs 680k f'cast, 698k prev
- New Home Sales
Slow, sideways morning so far. MBS unchanged and 10yr up 0.2bps at 4.3
Best levels of the day with MBS up 1 tick (.03) and 10yr down 2.3bps at 4.274
New best levels. MBS up 5 ticks (.16) and 10yr down 5.1bps at 4.246
MBS Market Alerts
