Weaker Despite Decent Mid-Day Bounce
Bonds began the week in weaker territory with yields pulled higher by EU bond market losses, rising oil prices, stronger stocks and a smattering of corporate issuance. MBS outperformed as Treasuries were more directly caught in the crossfire. Both sides of the market staged a comeback attempt after EU markets closed. A slump in stocks helped, but the rally faded just before the 4pm hour.
Econ Data / Events
– NAHB Builder Confidence 55 vs 65 f’cast, 67 prev
Market Movement Recap
08:54 AM Bonds unable to make gains overnight. Weaker at the open and weaker still since then. 10yr up 6bps at 2.99. MBS down roughly 3/8ths.
02:05 PM MBS at best levels and Treasuries near best levels of the day. 10yr still up 4bps at 2.967 and MBS down only 3 ticks (.09) at 100-05 (100.16).
04:28 PM Off the best levels now with MBS down roughly an eighth of a point from the highs and 6 ticks on the day (0.19). 10yr yields are up a few bps from the most recent update, currently up 6bps on the day at 2.99.