Bank Lifelines Lead Bond Market Reversal
Financial markets continue feeling out prospects for global banking contagion. Yesterday was a more fearful day, so bonds rallied. Today was a more hopeful day, so bonds sold off. That simple.
Econ Data / Events
Housing Starts
1.45m vs 1.31m f'cast, 1.32m prev
Building Permits
1.524m vs 1.340m f'cast, 1.339m prev
Philly Fed Index
-23.2 vs -15.6 f'cast, -24.3 prev
Jobless Claims
192k vs 205k f'cast, 212k prev
Market Movement Recap
08:52 AM Mostly flat overnight with modest gains early and no reaction to data. MBS up a few ticks. 10yr down 3.7bps at 3.425
10:25 AM Some initial weakness after ECB press conference, but bouncing back now. MBS up an eighth and 10yr down 7.5bps at 3.388%.
10:57 AM Losing ground quickly on First Republic bailout headlines. MBS down more than a quarter point from highs. 10yr quickly up 8-9bps at 3.458.
03:34 PM Selling spree leveled off shortly into the PM hours. Holding fairly flat with MBS down 3/8ths on the day and 10yr yields up 10.5bps at 3.57.
http://dlvr.it/Sl12Ln
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