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Bonds Following Stocks. That Simple

US bond markets spent the overnight session trading in narrow range and largely following fluctuations in equities markets.  10yr yields were slightly higher heading into the domestic session, but began falling precisely at 9:30am.  No coincidence there as the NYSE open saw a quick 20 point drop in the S&P, and bonds are definitely going to "be there" for any big potential stock market meltdown.

(Stocks have recovered half of the initial dip in the time I've been writing, and bonds have faithfully followed back toward unchanged levels.)

That's fairly simplistic as far as market analysis goes (i.e. stocks down, bond yields down), but it's 95% of the story so far in 2016.  Given how big the stock market moves have been the other 5% of relevant considerations have been overshadowed.

Today's likely-to-be-overshadowed event is the final Treasury auction of the week with 30yr Bonds at 1pm.  If we're going to see any organic bond market trading (i.e. bonds doing their own thing for their own, non-stock-related reasons), it would be then or shortly thereafter.

MBS / Treasury Market Data

UMBS 5.5
99.48
-0.17
UMBS 6.0
100.94
-0.08
2 YR
4.6221
+0.0541
10 YR
4.2008
+0.0128
Pricing as of: 3/28 2:15PM EST
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