Rates were under pressure overnight with 10yr hitting the highest yields in more than 2 weeks. Since then, bonds have surged back into stronger territory but remain more or less blocked by the same old floor.
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20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)
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Consumer Confidence 92.6 vs 94.5 f'cast, 98.3 prev
Bond weakness continued during Asian hours, but reversed course in the European session. Domestic trading is starting out just barely stronger for bonds and weaker for stocks.
8:20am CME open brought buyers, plain and simple. It wasn't huge, but it was enough for a few bps of strength in Treasuries and nearly an eighth of a point of gains in MBS. Stocks aren't doing anything interesting yet. No other market movers in play.
MBS were already at best levels, but Treasuries are heading back in that direction after a strong 7yr auction. MBS up a quarter point. 10yr yield down nearly 3bps. Stocks have been rising, but still a hair weaker on the day.
Best levels of the day now, potentially benefiting from stock market losses. 10yr yields challenging the .58% floor (but not clearly breaking it). 2.0 UMBS up a quarter point at 103.125.
MBS Market Alerts
