July 31, 2021

MP Now News

Mortgage News

Fighting Good Fight, Waiting on Fed Day

Fed Minutes Today at 2 p.m. EST

Follow the markets live as the Fed Minutes release today at 2 p.m. EST.

It’s Fed Day. Are you ready?

If you followed the MBS comment, you know what This afternoon could be a big deal. Markets were prepare for it for weeks and MBS Live members have followed these movements every step of the way.

This afternoon, when markets are shaken just milliseconds after the Fed announcement, MBS Live members will know what’s going on before anyone else. The accuracy and speed of our real-time price streams and alerts is unmatched.

MBS RECAP: Fight Good Fights, Wait On Fed Day

After a pretty rough Friday late last week, it’s slightly comforting to start the new week without any additional harm. But, as has been the case for weeks, these resilient episodes are noticeably lacking in bullish confirmation (i.e. we are not selling out, but we are not rallying in any meaningful way). Taking away is easy: it’s an environment of increasing rates until proven otherwise. If an event has the ability to change the tone of trading on bonds that week, it will be the Fed’s announcement on Wednesday for reasons discussed the next day.

Econ data / events

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

  • NY Fed Manufacturing 17.4 vs 14.5 f’cast, 12.0 prev

Market Movement Review

8:19 am

Pretty flat overnight with initial weakness giving way to a rally in Europe. Both were small. Sold a little better in the last hour. 10 years is completely unchanged at 1.625. UMBS is still finding liquidity but is also close enough to stay unchanged.

11:51 a.m.

More decent gains towards the end of the European session. France’s suspension of Astra Zeneca vaccine is in line with the rally, but it’s hard to tell if it’s the source. 10 year return now almost 3 basis points at 1,597. UMBS 2.5 coupons by an eighth.

1:06 pm

To give up some of the gains after the EU bond market closes. Nothing too dramatic and MBS / Treasuries are both still in slightly positive territory (UMBS + 0.06 and 10 years down 2 basis points to 1.604).

3:49 pm

After the CME closes at 3 p.m., the uneventful bubbling continues. Treasuries are 2 basis points lower on the day and UMBS 2.5 coupons are nearly unchanged.

About the author

Operations manager,
Mortgage News Daily / MBS Live

Matthew, a former creator, started writing for Mortgage News Daily in 2007, covering a wide range of topics. When he saw a need in the marketplace, his focus increasingly shifted to the relationship between MBS and broader financial markets for lenders. …

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