Full Reversal And Then Some

Full Reversal And Then Some Bonds more than made up from Tuesday's rout with a massive rally on Wednesday. Unlike Tuesday's move, which was driven by bond-market-specific selling pressure on the part of one account's massive liquidations, Wednesday's rally was broad-based and driven by war-related headlines. Specifically, newswires suggested the U.S. and Iran are now very close to agreeing on a plan to end the war. The market isn't just hearing "wolf!" It's pretty sure it's seeing an actual wolf on the horizon. This is important and ongoing proof of concept regarding the prospect of additional improvement in the event speculation becomes reality. Conversely, it's also a reminder that things can change quickly if the peace narrative deteriorates in coming days. Market Movement Recap 08:49 AM moderately stronger overnight. MBS up an eighth and 10yr down 2.1bps at 4.646 10:27 AM gaining some ground on Pakistan headlines (potential final draft of peace terms tomorrow). 10yr down 3.7bps at 4.629 and MBS up just over a quarter point. 01:18 PM Near best levels. MBS up 3/8ths and 10yr down 8.8bps at 4.58 02:53 PM MBS up 5/8ths and 10yr down 10bps at 4.567
Share the Post:

Related Posts

Mortgage Rates End Week Roughly Unchanged

Mortgage lenders rely on the bond market to generate mortgage rates. In addition to being fully closed on Monday for Memorial Day, bonds also close 3 hours earlier than normal on the preceding Friday (i.e. today). The abbreviated trading session was f…

Read More

Builders Breaking Ground at Fastest Pace in 2 Years

Residential construction activity was mixed again in April, as building permits rebounded while housing starts pulled back modestly from March’s stronger pace. The latest Census Bureau data continues to reflect a construction sector navigating uneven d…

Read More

Borrowers Shift Toward ARMs as Fixed Rates Climb

Mortgage applications pulled back last week as rising rates weighed on homebuyer demand, while refinance activity remained largely flat. The Mortgage Bankers Association (MBA) reported a 2.3% decrease in total application volume on a seasonally adjus…

Read More