MBS RECAP: Week Begins Slowly, But in Strong Territory


MBS and Treasuries continue to grind sideways in exceedingly low volume. Neither the Fed coupon pass or European headlines trickling in have been enough to move 10yr yields or Fannie 3.5’s from their narrow ranges on the day. 10yr Futures contracts–by way of benchmarking general “bond market volume”– might grow to HALF the amount of Friday’s tally.

Fannie 3.5’s have held between 104-00 and 104-05, extending the already record-breaking time spent holding this close to all-time highs. They’re currently 2 ticks up on the day, and indeed have spent most of their time in a 2 tick range from 104-02 to 104-04.

10yr yields are stuck between 1.86 and 1.88 on the day, but the latter has recently been the focal point of the range. Consumer Credit is the only potential mover ahead on the calendar at 3pm.

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