MBS RECAP: Record High MBS Prices, Record Low Rates. What Next?
Posted To: MBS Commentary
Record High MBS Prices, Record Low Rates. What Next? Bonds and rates clearly aren't looking at economic data as a key source of motivation, nor are they playing by the normal set of rules. Coronavirus has rewritten those rules. How long can this all-time-low rate environment last and how do we approach it from a lock/float standpoint? Econ Data / Events 11:30-11:50 AM (ET) – Fed 30yr UMBS Buying ISM Non Manufacturing 57.1 vs 50.1 f'cast ISM Business Activity 66.0 vs 49.0 f'cast Market Movement Recap 08:18 AM Bond yields and stocks moved higher out of the gate in the overnight session. Both generally remained elevated into the domestic trading hours. 10yr yields are up 2.8bps at .696 and UMBS 2.0 are down just over an eighth of a point. 10:05 AM Brief and limited reaction to ISM…(read more)