Bonds started the day with a test of the key technical cap at 1.37% in 10-year returns. With a little help from the geopolitical risk from the bombings in Kabul, the bonds managed to stay pretty calm for the 10 years, just a hair better than “unchanged” at 3:00 PM CME. MBS also found a foot and was 2 ticks (0.06) higher at the same time. But we’re not out of the woods yet. Fed Chairman Powell’s Jackson Hole speech will take place tomorrow afternoon. More than a few traders have been marginalized for this event this week. You’re ready to get back on track (either as a buyer or a seller) based on what Powell says.
Fed MBS purchases 10 a.m., 11:30 a.m., 1 p.m.
Unemployment claims 353k vs 350k f’cast, 349k prev
Q2 GDP (1st revision) 6.6 vs 6.7 f’cast
Slightly stronger and mostly flat during the Asian lessons, followed by a moderate weakness during the European session. 10-year yield is 1.356, which is less than 1bp. UMBS 2.0 coupons are down 6bps (2 ticks). No significant data in this AM.
Bonds back in negative territory ahead of the 7-year Treasury auction. 10 years rose 1bp to 1.359 and UMBS 2.0 fell almost an eighth point.
A hair stronger after a decent 7 year auction. Bonds are now roughly unchanged at 10 years just above 1.35% and MBS + 0.00 at 101-03 (101.09).
MBS pricing overview
The price shown below is delayed, please refer to the timestamp below. Real-time prices is available through MBS Live.
101-05: + 0-02
|Prices from 08/26/21 3:43 p.m.|
Today’s reprice notifications and updates
13:07 : 7-year auction mostly on the screws; No major reaction so far
11:04 am : Bonds turn green when escaping to safety (Kabul explosion headlines)
10:14 am : Bonds change from green to red after ECB minutes