Perfectly Acceptable Conclusion to a Potentially Volatile Week
With markets closed for the Juneteenth holiday on Friday, Thursday marked the end of the trading week. Considering the sell-off on Wednesday afternoon, the week had the potential to end on an uncomfortably volatile note. Instead, bonds pushed back nicely in the other direction--even though MBS didn't recoup as much of their losses as 10yr Treasuries. True, there is some sense of foreboding in the inability of 10yr yields to move below 4.42%, but all told, the week was actually surprisingly calm after factoring in Thursday's gains.
Econ Data / Events
Continued Claims (Jun)/06
1,810K vs 1800K f'cast, 1795K prev
Jobless Claims (Jun)/13
226K vs 225K f'cast, 229K prev
Philly Fed Business Index (Jun)
10.3 vs 10 f'cast, -0.4 prev
Philly Fed Prices Paid (Jun)
53.20 vs -- f'cast, 47.90 prev
Market Movement Recap
08:55 AM Bonds recover much of post-Fed sell-ff overnight, but mostly in the long end. 2yr yields lost more ground. 10yr yields are down 5bps at 4.446. MBS are up just under a quarter point.
10:24 AM MBS up 9 ticks (.28) and 10yr down 6.3bps at 4.434
03:02 PM MBS up 5 ticks (.16) and 10yr down 4.2bps at 4.454
Hedging, Warehouse, Processing Tools; M&A Results; Declining Demand for Housing
This morning, we head to Los Angeles, the site of the fires in the Pacific Palisades area in January 2025. Governor Gavin Newsom recently announced that FEMA approved California’s request to extend critical disaster assistance for Los Angeles fire surv…