Giving Peace (And Bonds?) a Chance

Giving Peace (And Bonds?) a Chance Granted, it may be far less promising than some of the more conclusive headlines that led up to previous ceasefires and peace memos, but Tuesday delivered at least a modicum of hope that war sentiment is shifting. In not so many words, an Israeli media outlet reported that U.S./Iran mediators are getting closer to re-implementing the previous memo of understanding that paved the way toward more permanent peace. Markets take this with a grain of salt for obvious reasons, but it was enough to lift stocks and cause a small-but-quick drop in oil prices and bond yields. There were no other major market movers in play. Econ Data / Events Case Shiller Home Prices-20 y/y (May) 1.6% vs 1.3% f'cast, 1.1% prev CaseShiller 20 mm nsa (May) 0.9% vs -- f'cast, 1% prev FHFA Home Price Index m/m (May) 0.3% vs 0.2% f'cast, -0.1% prev FHFA Home Prices y/y (May) 2.2% vs -- f'cast, 2% prev Market Movement Recap 09:05 AM Slightly stronger start. MBS up 3 ticks (.09) and 10yr down 2.5bps at 4.63 10:17 AM Gaining ground as stocks sell. MBS up 5 ticks (.16) and 10yr down 4.1bps at 4.613 01:36 PM Off best levels, but still much stronger. MBS up 9 ticks (.28) and 10yr down 5.5bps at 4.599 03:41 PM Holding most of the rally after hours. MBS up a quarter point and 10yr down 5.2bps at 4.603