Bonds Improve on Late Day Risk Aversion; Thoughts on Liquidity
Thu, Mar 23 2023, 3:56 PM
Bonds Improve on Late Day Risk Aversion; Thoughts on Liquidity
Bonds began the day in slightly weaker territory, but eventually turned green with help from a flight-to-safety in Europe. A few hours later, US markets did the same thing, resulting in even better gains for Treasuries. 10s dropped under 3.40% and MBS gained more than an eighth of a point. In other news, we’re seeing more and more confusion (and misinformation) regarding the notion of illiquidity in the bond market. Today’s video for MBS Live members discusses that in greater detail.
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- Jobless Claims
- 191k vs 197k f’cast, 192k prev
- Jobless Claims
08:46 AM
modestly weaker in Europe. Additional selling on corporate issuance and First Republic pre-market rally. 10yr up 6bps at 3.513. MBS down 3 ticks (0.09).
12:11 PM
Slow, steady gains in bonds with MBS outperforming 10yr Treasuries. MBS up almost a quarter point. 10yr just hit ‘unchanged’ at 3.451.
01:38 PM
Off the best levels, but still stronger on the day. MBS up an eighth. 10yr down .2bps at 3.449.
03:45 PM
Yields drop to best levels on flight-to-safety trading heading into the 3pm CME close. Stocks fell in concert. 10s down 6+ bps at 3.387. MBS up nearly a quarter point.
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Source: mortgagenewsdaily.com