With a strong movement last Friday, the bond market ended the week a little stronger than at the end of the previous week. This is easier to see on the Treasury side of the market, where the 3pm closing price of the CME was below 1.26%, down from around 1.30 on Friday afternoon. MBS underperformed and eventually returned to “unchanged” levels at 4:00 PM, although government bonds were slightly stronger that day.

  • Fed MBS purchases 10 a.m., 11:30 a.m., 1 p.m.

  • NY Fed Manufacturing 18.3 vs 29.0 f’cast, 43.0 back

8:54 a.m.

A little stronger overnight due to the weakness in Asia. Slight recovery towards weaker levels in Europe but still 10 years intraday (-1.6 basis points) at 1.267%. MBS are up 2 ticks, or 0.06.

09:49 am

Extra profits after the NYSE opens at 9:30 a.m. 10 years down 5.3 basis points to 1.23% and MBS up almost a quarter point. S&P is down half a percent over the course of the day.

11:53 a.m.

From the best levels now. 10 years back to 1.248 after hitting 1.223% previously. MBS is down an eighth point from its AM highs.

3:57 pm

10yr is another bp higher and MBS is 2 ticks lower since the last update (-.19 from intraday highs). Trade has slowed down to a trickle. Nothing remarkable is driving the weakness – just a general drift after the AM highs.