May 18, 2021

MP Now News

Mortgage News

Still a Decent Week Despite Friday Slide

Fed Minutes Today at 2 p.m. EST

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

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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.

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MBS RECAP: Still a decent week despite Friday Slide

Thursday morning was exceptionally strong for bonds – perhaps too strong, with too much influence from artificial factors like short covering and engineered algae. Today’s modest weakness confirms a more sober view of the latest trend, and while interest rates are not as low as they were yesterday, the trend is still in good shape.

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

09:12 am

Modestly stronger overnight, but weaker since 8 a.m. There is no clear connection to a calendar event. Domestic traders are now simply selling (posting profits from recent long positions, hedging new positions) Corporate issueor retracing bonds after yesterday short press).

1:25 p.m.

Very little has changed in the AM values. Today is true to its “placeholder” reckoning. No noticeable market drivers in the game. 10yr and MBS are both unchanged from yesterday’s 5 p.m. values.

5:19 pm

Late day weakness but nothing too terrible. The 10-year yield rose 1.6 basis points on the 5pm day to 1.59%. 2.5 UMBS fell a little more than an eighth point, leading to several negative reprisals. Further correction trends (the good kind) will remain for the time being.


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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