Bonds were at the top of their most recent range last Friday, but buyers emerged after Powell’s Jackson Hole Speech. The new week brought a smooth but obvious version of the same trade as both stocks and bonds improved on the NYSE opening. Ultimately, this has only helped add to a sideways range as markets wait for this week’s data – especially Friday’s big job report.
Fed MBS purchases 10 a.m., 11:30 a.m., 1 p.m.
Outstanding home sales -1.8 vs. +0.4 f’cast, -2.0 prev
Bonds were slightly stronger in the night session despite slightly higher EU yields. 10 years down .3bps at 1.307 and 2.0 UMBS by 2 ticks (0.06) at 101-13 (101.41).
Modest additional gains after 10am (Fed TSY buy operation, month-end buyers, and technical triggers). The 10-year rate of return now drops 2 basis points to 1.29%. 2.0 UMBS by an eighth at 101-16 (101.5).
Ultra-flat at slightly higher levels with effectively zero movement in the PM hours. 10 years down 2.5bps to 1.285 and MBS still up 1/8.
MBS pricing overview
The price shown below is delayed, please refer to the timestamp below. Real-time prices is available through MBS Live.
101-18: + 0-06
|Prices from 08/30/21 5:35 p.m.|
Today’s reprice notifications and updates
11:01 am : Modestly stronger overnight; Some follow-through after 10am