Super Duper Flat After Overnight Losses

In a vacuum limited to this week, Friday ended up being the only interesting day because it was the only outlier in terms of bond market price action.  On the previous 4 days, the highest MBS price was within a 0.09 range and the lowest price was within a 0.06 range. Lastly, the widest high/low range of the week was about a quarter point.  If you’re not sure what to make of that, it means Mon-Thu were flat.  Friday was flat too, but only after overnight losses took MBS prices almost a half point below Thursday’s highs.  In the bigger picture, this still isn’t that significant–especially considering these levels would still be the best in several months before last Thursday’s friendly CPI data.

Market Movement Recap

10:03 AM Weaker overnight with additional selling early.  10yr up 4.2bps at 4.242.  MBS down 6 ticks (.19).

01:04 PM sideways near weakest levels.  MBS down 5 ticks (.16) and 10yr up 3.4bps at 4.236

03:45 PM Zero change since last update.  Very flat in general since the AM hours and even flatter in the PM hours.