Bonds Continued Drifting Weaker Throughout The Day (10yr Hit 4.6%)

Bonds Continued Drifting Weaker Throughout The Day Nothing new or interesting happened during the course of the trading day. The key market movers were in place at the start of domestic trading. From an analytical standpoint, the morning commentary adequately recaps the day's bond market motivations. Yields continued drifting higher throughout the session as investors pulled out of both sides of the market in protest of the apparent extension of the Iran war timeframe. 10s ultimately tapped 4.6% and MBS flirted with a 3/4th point day-over-day drop. In the bigger picture, mortgage rates are doing much better than Treasuries compared to last year's levels thanks to GSE bond buying. Econ Data / Events NY Fed Manufacturing (May) 19.60 vs 7.5 f'cast, 11.00 prev Industrial Production (Apr) 0.7% vs 0.3% f'cast, -0.5% prev Market Movement Recap 08:26 AM Sharply weaker overnight. MBS down more than 3/8ths and 10yr up 6.5bps at 4.55 11:47 AM weakest levels. MBS down 5/8ths and 10yr up 10.2bps at 4.586 02:47 PM MBS now down .75 and 10yr up 11bps at 4.595