MBS RECAP: Limited Reaction to Headlines and Fed Minutes

Posted To: MBS Commentary

Limited Reaction to Headlines and Fed Minutes After a quiet trading day yesterday, today proved to be even quieter. That said, bonds were still willing to react to covid headlines and the Fed meeting minutes, albeit just barely enough to notice. Econ Data / Events 11:30-11:50 AM (ET) – Fed 30yr UMBS Buying ADP Employment 2.369m vs 3m f'cast , +3.065m prev (revised up from -2.76m) ISM Manufacturing: 52.6 vs 49.5 f'cast , 43.1 prev Construction Spending: -2.1 vs +1.0 f'cast , -3.5 prev Market Movement Recap 08:36 AM Bonds were weaker right out of the gate in the Asian trading session, but only moderately. They've been essentially flat since then with 10yr yields up 2-3bps on the day, currently trading at .686%. MBS are outperforming again, with prices currently up 1 tick (0.03…(read more)