Weaker Despite Decent Mid-Day Bounce

Bonds began the week in weaker territory with yields pulled higher by EU bond market losses, rising oil prices, stronger stocks and a smattering of corporate issuance.  MBS outperformed as Treasuries were more directly caught in the crossfire.  Both sides of the market staged a comeback attempt after EU markets closed.  A slump in stocks helped, but the rally faded just before the 4pm hour.  

Econ Data / Events

– NAHB Builder Confidence 55 vs 65 f’cast, 67 prev

Market Movement Recap

08:54 AM Bonds unable to make gains overnight.  Weaker at the open and weaker still since then.  10yr up 6bps at 2.99.  MBS down roughly 3/8ths.

02:05 PM MBS at best levels and Treasuries near best levels of the day.  10yr still up 4bps at 2.967 and MBS down only 3 ticks (.09) at 100-05 (100.16).

04:28 PM Off the best levels now with MBS down roughly an eighth of a point from the highs and 6 ticks on the day (0.19).  10yr yields are up a few bps from the most recent update, currently up 6bps on the day at 2.99.