Hormuz Back in The News

Hormuz Back in The News Iran has attacked a few cargo ships recently and there are repercussions. The peace deal looks to be on shakier ground over the past 24 hours with both sides talking tough on the internet. Just before 3pm, the U.S. referred to Iran's actions as unacceptable and revoked the license that allowed the sale of Iranian oil. Oil prices were higher all day, but especially after that news. Bond yields have been quick to reconnect with their old flame, exhibiting strong correlation over the past 24 hours. The net effect by 3:10pm was a 6.6bp rise in 10yr yields (4.536) and nearly a half point drop in MBS. Market Movement Recap 08:36 AM Modestly weaker overnight with some pressure from Amazon bond announcement. 10yr up 1.8bps at 4.488 and MBS down 3 ticks (.09).  09:59 AM More selling (some related to 9:30am NYSE open and some due to Hormuz news). 10yr up 3.8bps at 4.508 and MBS down a quarter point.  01:29 PM 10yr up 5.3bps at 4.523 and MBS down 10 ticks (.31).