July 27, 2021

MP Now News

Mortgage News

Slow Start to a Potentially Slow Week.

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: A slow start to a possibly slow week.

Bonds held up well today, leaving at least half of last week’s gains intact. In the last two days of trading, government bonds shy away from a more aggressive trend towards lower yields and instead continue to advocate sideways consolidation. Things can always change, of course, but there is limited inspiration on the calendar in the coming days as the ECB’s announcement on Thursday is the first thing that really pops out. Stocks may be interested in a corporate earnings calendar that keeps rising, but the correlation between stocks and bonds has been a hit and miss for months.

Econ data / events

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

  • Housing starts 1,739m vs 1,613m f’cast
    Building permits 1.766m vs 1.75m f’cast

Market Movement Review

8:14 am

Bonds started a little stronger in Asia but lost ground a few hours after the European session started. 10 year returns are now “unchanged” on the day at 1.59%. 2.5 UMBS also remain unchanged at 103-13 (103.41).

1:21 p.m.

A bit of weakness sooner, followed by an upswing to unchanged levels. The yields for 10 years are now rising again slightly and are currently increasing by 1.3 basis points to 1.603. UMBS 2.5 coupons remain unchanged at 103-12 (103.375).

2:55 pm

Government bonds remain slightly weaker but managed to maintain a flat trajectory at 1 p.m. after a little weakness. 10 year yields are up less than 1 basis point at 1.599%. 2.5 UMBS are up 1 tick (0.03) at 103-13 (103.41).

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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