MBS RECAP: Stocks Try to Help, But Bonds Stay Relentlessly Flat

Posted To: MBS Commentary

Stocks Try to Help, But Bonds Stay Relentlessly Flat Econ data, Treasury auctions and Fed speakers all failed to move the needle. Bonds only showed signs of life in response to new corporate debt issuance and a big sell-off in stocks. The net effect left Treasuries and MBS effectively unchanged. No surprise in the current environment! Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) FHFA Home Prices (y/y, Jul) 6.5 vs 5.8 prev Markit PMI 54.4 vs 54.6 previously Market Movement Recap 09:47 AM No surprises here relative to the recent playbook. Stocks drifted modestly higher overnight and bond yields followed. 10yr notes are currently up half a bp at .676 and 2.0 UMBS are down 1 tick (0.03) at 102-31 (102.97). No major reaction to the just-released Markit PMI data…(read more)