Strong in The AM, Weaker in The PM
2 Hours, 9 Min ago
Bonds improved fairly steadily in the AM hours. After an initial glut of buying demand in the first hour of trading, there was a linear trend channel to the best level of the day right at noon ET. After that, a similarly linear trend took bonds back toward (but not into) weaker territory. None of the above occurred outside a range that we’d consider anything other than uneventful. Overseas data and trading likely helped play a role in the ebb and flow. The 3yr Treasury auction didn’t have a big impact, but concession-building for tomorrow’s 10yr auction could have contributed to the afternoon weakness.
09:31 AM
modestly stronger overnight with better buying after the 8:20am CME open. MBS up 5 ticks (.16) and 10yr down 4bps at 4.445
11:44 AM
Best levels of the day with MBS up 6 ticks (.19) and 10yr down 6bps at 4.425
01:54 PM
No major reaction to 3yr auction. MBS still up 6 ticks (.19). 10yr down 4.1bps at 4.445
02:43 PM
steady weakness in the PM hours, but still stronger on the day. UMBS 6.0 still up 6 ticks (.19), but down an eighth from the highs. 10yr still down 2.8bps at 4.458 but up almost 4bps from lows.
04:04 PM
Modest bounce keeps bonds safely green in the final hour. MBS up 6 ticks (.19) and 10yr down 3.3bps at 4.454
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