The stock market tried a few different moves on the bond market today and while correlation is still visible at times, Treasuries generally refused to be dragged very far from home.  MBS did just a bit better, benefitting from light supply at today’s Fed buying operations.

Econ Data / Events

  • 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)

  • Jobless Claims 870k vs 840k f’cast, 866k prev

  • Continued Claims 12.58m vs 12.75m prev

  • New Home Sales 1.011m vs 895k f’cast, 965k prev (highest in 14 years)

Market Movement Recap

08:47 AM

Bonds were modestly stronger overnight, staying in line with stock market weakness as stimulus remains elusive.  S&P futures down .75%.  10yr yields down 1 bp to .67%.  And 2.0 UMBS up 2 ticks (0.06) to 103-03 (103.09).  No reaction to jobless claims data.

01:19 PM

No major changes for bonds for the entire day so far.  7yr Auction went fine (solid “B”).  Stocks have been pushing higher since the NYSE open, but bonds haven’t cared too much.  10yr yields still at .67%.  MBS up another tick to 103-04 (103.125).

03:03 PM

MBS squeezed a bit higher in the afternoon after a morning of lighter supply at Fed buying operations (under 7 billion offered in each session versus higher volume days that range from 8-11 billion).  2.0 coupons now up 5 ticks (.16) at 103-05 (103.16)