Bonds and rates clearly aren't looking at economic data as a key source of motivation, nor are they playing by the normal set of rules. Coronavirus has rewritten those rules. How long can this all-time-low rate environment last and how do we approach it from a lock/float standpoint?
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11:30-11:50 AM (ET) - Fed 30yr UMBS Buying
Bonds generally improved in the overnight session as stocks lost ground. 10yr yields were as low as .661, but are now back up to .671 in quiet trading. MBS are roughly unchanged to start.
Initial strength in bonds remains, but MBS are outperforming. Last night's prepayment speed report could have something to do with that. UMBS 2.0 coupons are up 6 ticks (.19). 10yr yields down half a bp at .674
Treasuries have caught up to MBS a bit in terms of day-over-day performance. Very decent 3yr auction. 10yr yields now down 2bps to .658. UMBS 2.0 coupons up a quarter point.
Bonds surged into the close as stocks ultimately swooned (S&P futures down more than 1%). 10yr yields down more than 4bps at .635. UMBS 2.0 up 31bps (10 ticks).
MBS Market Alerts
