First thing's first: if you haven't seen the adverse market fee make it back onto rate sheets yet, that makes locking a no-brainer. If you have, then we can move on to considering the impact from the Fed Announcement. Today's video discusses the relevant considerations in detail.
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20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)
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NY Fed Manufacturing 17.0 vs 6.0 f'cast, 3.7 prev
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Import Prices 0.9 vs 0.5 f'cast, 1.2 prev
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Industrial Output 0.4 vs 1.0 f'cast, 3.5 prev
Bonds were unchanged to start the overnight session but lost ground modestly during European hours. Stocks are up almost another 1%, but the bond weakness doesn't look too correlated with that. 10yr up half a bp at .68%. UMBS 2.0 opening down 1 tick (-0.03) at 103-01 (103.03).
Intensely uneventful trading session as bonds drift sideways ahead of tomorrow's Fed announcement. No change from the last update in MBS. Treasury yields are a hair lower but still slightly higher on the day.
Stick a fork in the bond market. If we didn't see any appreciable volatility at the 3pm CME close, "it's done" for the day. All eyes on the Fed tomorrow, with a slight chance of some volatility with the morning's econ data (Retail Sales).
MBS Market Alerts
