Sometimes, and especially in the summer months, Mondays become unofficial weekend days. And while 10 year returns hit their lowest level in nearly two weeks this morning, the same could be said of today. There were no clear examples of cause and effect in the game, nor was there any significant volume or volatility. The low yields were less than 2 basis points from Friday lows and we only traded around 2 basis points that day. MBS prices rose almost an eighth of a point early in the day and were perfectly flat from then on.

Econ data / events

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

  • Markit PMIs:
    Services 70.1 vs 64.5 f’cast
    Making 61.5 vs 60.2 f’cast

  • Existing sales 5.85 million versus 6.09 million f’cast

Market Movement Review

8:51 am

slightly stronger overnight with very low volume / volatility. No obvious market drivers and nothing special in today’s economic calendar. 10 years from a little more than 1 basis point lower and MBS almost an eighth point higher.

1:04 p.m.

Profits rose modestly at 10:00 as the NYSE Open brought cash to both sides of the market. Bank of England comments also helped EU yields, and Treasuries may have drawn some guidance from it. We are now back in line with the AM’s previous low yields of 1.608%. MBS are still up 3 ticks (0.09).

3:55 pm

No changes and no drama since the last update. 10-year yields are still just over 1 basis point lower on the day and MBS are still about an eighth point higher. Unofficial 3rd day of the weekend.