Back to Uneventful Already?

MBS are ending the trading day at almost perfectly unchanged levels–not the sort of thing one might expect on what has been yet another exceptionally volatile week with both a presidential election and Fed announcement. Part of the reason is that MBS happened to align well with the portion of the yield curve that was right in the middle of gains and losses.  In other words, 2-3yr Treasuries sold off.  10-30yr Treasuries rallied.  5yr Treasuries were roughly unchanged, just like MBS.  So no, we’re not quite back to “uneventful” yet, even though things have calmed down markedly from Wednesday morning.

Econ Data / Events

Consumer Sentiment

73 vs 71 f’cast, 70.5 prev

Inflation Expectations 1yr

2.6 vs 2.7 f’ast/prev

Market Movement Recap

10:21 AM Slightly stronger overnight and gaining more ground now.  MBS up 6 ticks (.19) and 10yr down 7bps at 4.268

12:01 PM slightly weaker since last update.  MBS up 2 ticks (.06) and 10yr down 3.4bps at 4.304

02:26 PM MBS now unchanged and 10yr down 3.3bps at 4.305