Bonds were at the top of their recent range last Friday, but buyers emerged after Powell's Jackson Hole Speech. The new week brought a gentle but obvious version of the same trade as both stocks and bonds improved at the NYSE open. Ultimately, that only served to reinforce a sideways range as markets wait for this week's data--especially Friday's big jobs report.
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Fed MBS Buying 10am, 1130am, 1pm
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Pending Home Sales -1.8 vs +0.4 f'cast, -2.0 prev
Bonds were slightly stronger in the overnight session despite modestly higher EU yields. 10yr down .3bps at 1.307 and 2.0 UMBS up 2 ticks (0.06) at 101-13 (101.41).
Modest additional gains after 10am (Fed TSY buying operation, month-end buyers, and technical triggers). 10yr yield now down 2bps at 1.29%. 2.0 UMBS up an eighth at 101-16 (101.5).
Ultra flat at slightly stronger levels with effectively zero movement in the PM hours. 10yr down 2.5bps at 1.285 and MBS still up an eighth.
MBS Market Alerts
