Back to Regularly Scheduled Programming (Unfortunately)
Tue, Nov 12 2024, 4:35 PM
Bonds sold off on Tuesday both during the domestic session and in the overnight hours leading up to it. Motivations are a matter of conjecture as there is not a conveniently obvious scapegoat. That hasn’t stopped journalists, analysts, and traders from chiming in. The resulting laundry list mostly includes political considerations ranging from specific revelations regarding cabinet appointees to generalizations about the market continuing to process fiscal implications. We’d certainly add a high likelihood of positional considerations with last Thu/Fri now looking very much like an opportunity to cover shorts (makes yields move lower) and get neutral ahead of the 3-day weekend before getting yields back in line with post-election highs today.
08:41 AM
Bonds move sharply weaker overnight and in early trading. 10yr up 8.4bps at 4.389 and MBS down 13 ticks (.41)
11:59 AM
MBS are down 14 ticks (.44) on the day and just over an eighth of a point from the AM highs. 10yr yields are up 10.7bps at 4.413.
03:27 PM
Weakest levels of the day for MBS, down nearly 5/8ths of a point. 10yr up 13bps at 4.437
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