Domestic Bonds

Comic misdirection between stocks and markets (updated video)

MBS Live Recap: Comic Misdirection Between Stocks and Markets (Updated Video)

Through:

1 hour, 46 minutes ago

Geopolitical issues remain front and center when it comes to financial markets, but only because of the lack of anything new or exciting on the inflation/Fed front. Twitter (something markets actually pay attention to) was on fire with various headlines of varying importance and timing. Network news avoided wading into this pool at first. As soon as he did, the markets reacted, then quickly rebounded when it was revealed that the pool was contaminated. Bonds experienced all of the above in the form of an early morning selloff, an early afternoon rally, and a late day correction to generally lower levels.

09:06

Stronger overnight after the EU open, but then weaker after Lavrov’s comments just before the start of the domestic session. 10-year up 5.6 basis points to 1.974. UMBS 3.0 down 5 ticks (0.16) to 100-05 (100.16).

11:34 am

Further weakness as the morning progresses. It’s very linear from Lavrov’s comments. 10yr now up 10 basis points to 2.017% and 3.0 UMBS down nearly half a point to 100-00.

3:08 p.m.

Risk-free rally after Ukraine-related headlines, then a rebound when those headlines were put into context. Some lenders are still repricing for the better, but MBS is halfway to the day’s lows (currently down 3/8). 10-year is back at 2.0% after dropping to 1.96%


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