Rates are low. Unless coronavirus wins, rates should continue to gradually move higher, but not in a straight line. At times (like today), we may see the mortgage market weaken while Treasuries improve. Today’s video breaks that down in easily digestible detail.
Econ Data / Events
Market Movement Recap
Bonds began the overnight session fairly flat but popped (higher in yield) in concert with stock prices on news that China was planning on expanding US agricultural purchases. Early domestic trading brought a bit of follow-through. 10yr up 2.8bps at .735. UMBS 2.0 down an eighth vs yesterday.
Nice bounce at .74% ceiling in 10yr yields, and now below .72% pivot point. Nearly unchanged now. Stock slump helping. MBS lagging, no change since last update.
Treasury rally continued all the way into positive territory as stocks sold off more aggressively. Unable to stay below 0.69%, but still close at .694. MBS still lagging despite trying to rally a bit just after the noon hour.
Treasuries trickling to lowest yields as the day winds down. MBS prices recovered, but haven’t made it into positive territory. All the underperformance was broken down in today’s Huddle video
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
101-28 : -0-02
0.6920 : -0.0020
|Pricing as of 6/19/20 4:31PMEST|
Today’s Reprice Alerts and Updates
1:51PM : If You Were Planning on Locking Today…
12:04PM : Treasuries Turn Green; MBS Lagging
9:05AM : Weaker Overnight, But Showing Some Resilience
MBS Live Chat Highlights
Matthew Graham : “FED’S CLARIDA SAYS THERE IS NO LIMIT TO FED’S PURCHASES OF TREASURY SECURITIES OR MORTGAGE-BACKED SECURITIES”