MBS RECAP: Super sideways ahead of retail sales
The retail sale used to be a big ticket report, but like so many others, it’s well below the post-Covid level. That will change at some point. We could already see vague indications of this change tomorrow. In any case, those mere clues would be more exciting than anything that happened today.
Econ data / events
Fed MBS purchase 10 a.m., 11:30 a.m., 1 p.m.
Import prices 1.2 vs 1.0 f’cast
Export prices 2.1 vs 1.0 f’cast
Market Movement Review
Quiet, calm session overnight. Minimal movement in Treasuries. Modest weakness. 10 years results in 1.2 bps at 1.632 and UMBS are completely unchanged.
Modest additional weakness for government bonds, mainly dragged into returns by stronger weakness in European bonds. Technical data and corporate emissions are also factors. 10 years to 2.3 bps at 1.643. MBS outperformed and held nearly unchanged levels.
Still on the water towards 3pm CME close. The returns for 10 years are no higher than before noon. MBS are flirting with lows but are only down 1 tick on the current day (-0.03).
Discuss the MBS and mortgage markets on our streaming dashboard