We've been following .58% in 10yr yields for months as the best candidate for the bottom of "the range." Now that mortgage rates and MBS spreads have largely settled relative to Treasuries, we might wonder if they'll also have a tough time moving lower. The big caveat here is that there's still a chance that the .58% bounces are purely coincidental. If it continues to happen, we'll be talking more and more about it.
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20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)
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Jobless Claims 1.416m vs 1.300m f'cast, 1.307m prev
Bonds modestly stronger overnight despite slightly higher stock prices. 0.58% resistance remains intact underfoot. 2.0 UMBS starting out almost an eighth of a point higher.
Bonds briefly improved after Mnuchin comments (lower unemployment benefits and no payroll tax cut in the next round of stimulus), but are struggling to stay below .58%. 2.0 UMBS are an eighth of a point higher.
MBS now down an eighth from the highs. 10yr yields unable to break below .58%. Low volatility overall.
MBS continue to underperform despite Treasuries returning toward their better levels of the day. 10yr yields are down nearly 2bps at .582. 2.0 UMBS are down at the lows of the day, - 2 ticks (-0.06) vs yesterday and trading at 102-29 (102.91).
MBS Market Alerts
