Some Signs of Resilience But It's Still Anyone's Game

by Matthew Graham

Some Signs of Resilience But It's Still Anyone's Game After several consecutive business days of abject unpleasantness in the bond/mortgage market, Tuesday finally offered a modest consolation. During domestic trading hours, every attempt to push 10yr yields over 5% was met with a supportive bounce--presumably from value buyers targeting 5% as a good entry point to own 10yr notes for investment purposes. We wouldn't read too much into this just yet. It is a defensible conclusion today (especially in light of oil prices surging over to over $106), but Wednesday's Fed reaction could completely change the landscape. We'll discuss "what if" scenarios in today's recap video. Market Movement Recap 09:16 AM MBS unchanged and 10yr up 1.7bps at 5.001 01:08 PM MBS down 1 tick (.03) and 10yr up 2.2bps at 5.006 03:13 PM MBS up 1 tick (.03) and 10yr up 1.6bps at 5.00