As intraday charts give way to daily charts in the coming weeks, it will be all too easy to look back on today's calendar and conclude that it could only have been the Fed announcement that was capable of motivating a 10+bp rally in Treasuries and a half point gain in MBS. As we here in the past know, that rally was largely already in place ahead of the Fed announcement. We can't chalk it up to the high continued claims number, though that may have helped. The simplest theory is that there are "dip buyers" in bonds now that the election is over. It's not a bad one, but we could just as easily say that a glacial drift toward higher rates got ahead of itself yesterday and fell back in line with the trend today. Either way, MBS and mortgage rates have outperformed the move in Treasuries, and there's at least a moment of hope for optimists to imagine an inflection point.
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- Jobless Claims
- 221k vs 221k f'cast, 218k prev
- Continued Claims
- 1892k vs 1880k f'cast, 1853k prev
- Jobless Claims
Slightly stronger overnight and little-changed after jobless claims data. MBS are up a quarter point and 10yr yields are down 1.6bps at 4.415
Additional gains all morning. MBS at best levels, up half a point. 10yr down 9bps at 4.34
unchanged to a hair weaker after Fed announcement. MBS up 15 ticks (.27) and 10yr down 7.6bps at 4.356
2 way trading after Powell press conference, but mostly stronger. MBS up more than half a point and 10yr down 11.3bps at 4.318
MBS Market Alerts
