Bank Lifelines Lead Bond Market Reversal

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

Comments

Post a Comment

Popular posts from this blog

#ForBuyers #ForSellers #HousingMarketUpdates #BuyingMyths Experts Project Home Prices Will Rise over the Next 5 Years: Even with so much data showing home prices are actually rising in most of the country, there are still a lot of people who worry there will be another price crash in the immediate future. http://dlvr.it/SzgmjG

Image
#ForBuyers #ForSellers #HousingMarketUpdates #BuyingMyths Experts Project Home Prices Will Rise over the Next 5 Years: Even with so much data showing home prices are actually rising in most of the country, there are still a lot of people who worry there will be another price crash in the immediate future. http://dlvr.it/SzgmjG /> http://dlvr.it/Szgmz4
Read more

Strong Start Hit by ISM, But Shaking Off Weakness

Image
Bonds rallied nicely in the overnight session and extended the gains in the first few hours of domestic trading.  The ISM Services data came in just a bit higher than expected with the employment component quite a bit higher.  Bonds gave up some of their overnight gains, but have been pushing back nicely as the day progresses.  The rebound has been enough to get 10yr yields back under the 3.99% technical level (or 3.98% or 4.0% depending on your preference). Note the good show of support at the 4.08 technical level yesterday.   Here's how the progress looks in 5.5 MBS: http://dlvr.it/SkKPRS
Read more