Bonds Defend New Territory

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Now that bonds have broken through previous resistance levels (.58 in 10yr yields and 103.00 in 2.0 UMBS), what comes next?  Rather than look for fast-paced follow-through, it would be enough of a victory to merely see bonds maintain these newly acquired levels.  Today we’ll discuss what those levels might look like and what we’d need to see for them to persist.

Econ Data / Events
Market Movement Recap
09:21 AM

Bonds were only modestly weakner at the beginning of the overnight session.  It wasn’t until 7:49am that Treasuries popped a bit higher in yield.  They’ve been pushing a bit higher since then.  MBS, on the other hand are unchanged now, and have improved slightly so far today.  The discrepancy could most easily be explained by traders setting up new trading positions or making allocation changes for a new month.

12:37 PM

No major changes since the last update.  MBS have been trading a narrow range around ‘unchanged.’  Treasuries are still slightly weaker.  Corporate bond issuance is adding to the Treasury-specific pressure.

MBS Pricing Snapshot

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.

UMBS 2.0
103-22 : +0-00
10 YR
0.5543 : +0.0183
Pricing as of 8/3/20 4:29PMEST

Today’s Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:25PM  :  Eerily Calm For MBS

Economic Calendar
Time Event Period Actual Forecast Prior
Monday, Aug 03
10:00 ISM Manufacturing PMI * Jul 54.2 53.6 52.6
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