Uneventful Trading Day Despite Moderate Weakness

Today had the feel of a holiday trading day in the bond market–especially for MBS which traded their narrowest, most sideways range in more than a month. That’s saying something considering said month includes the Thanksgiving holiday.  Moderate weakness was in place right from the start of the overnight session.  Domestic hours didn’t change things for better or worse.  There’s a strong sense of anticipation for next week’s events (CPI/Fed) which dwarf any other potential market mover in the meantime. Friday’s PPI data is still important, however, as it offers an earlier look at November’s price inputs than next week’s CPI.

Econ Data / Events

Jobless Claims

230k vs 230k f’cast, 226k prev

Continued Claims

1.671m vs 1.600m f’cast, 1.609m prev

Market Movement Recap

08:36 AM Moderately weaker right at the start of the overnight session and then flat all night.  10yr up 3.1 bps at 3.451.  MBS down a quarter point but still searching for liquidity.

09:57 AM Modest, linear trend toward higher yields.  10yr up 7bps at 3.49.  MBS down 3/8ths of a point.  

12:01 PM Illiquidity creating volatility in MBS.  No major change in Treasuries, up 5.1bps at 3.471.  MBS have been at their highs and lows of the day in the past 30 minutes, currently down about a quarter point.

02:50 PM Near the weakest levels of the day with 10yr up 8bps at 3.50 and MBS down 3/8ths of a point.

Published On: December 8, 2022 / Categories: Mortgage News /