Bonds Fight Off Sharper Retreat Ahead of Data

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Bonds began the day in moderately weaker territory as Turkish tensions eased overnight.  That certainly wasn’t the only game in town as far as market movers were concerned though!  On several occasions throughout the day, US bond markets could be seen moving in the opposite direction to that implied by Turkish Lira, etc.

We’re left with the general sense that bond yields were pulled lower than they’d otherwise like to be by the Turkey-related drama from late last week, and that there’s a slew of reasons for them to be gradually moving back from whence they came (2.9-3.0% range).  As of this afternoon, that looks to be exactly what they have in mind.

10yr yields are heading out the door up just over 2bps, trading near 2.90%.  Fannie 4.0 MBS are down an eighth of a point at 101-21 (101.66).  Tomorrow brings the important Retail Sales report as well as several other B-team data releases.  As a team, the data could be happy to take the market-movement torch from Turkey.

MBS Pricing Snapshot

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.


FNMA 4.0

101-21 : -0-04


10 YR

2.8985 : +0.0215

Pricing as of 8/14/18 4:29PMEST

Today’s Reprice Alerts and Updates

10:28AM  :  Bonds Retreat After Modest Morning Gains

Economic Calendar

Time Event Period Actual Forecast Prior
Tuesday, Aug 14
8:30 Import prices mm (%)* Jul 0.0 0.1 -0.4
8:30 Export prices mm (%)* Jul -0.5 0.2 0.3
Wednesday, Aug 15
7:00 MBA Purchase Index w/e 233.1
7:00 Mortgage Refinance Index w/e 927.6
8:30 Retail Sales (%)* Jul 0.1 0.5
8:30 Productivity Preliminary (%) Q2 2.3 0.4
8:30 Labor Costs Preliminary (%) Q2 0.3 2.9
9:15 Capacity Utilization (%) Jul 78.2 78.0
9:15 Industrial Production (%) Jul 0.3 0.6
10:00 NAHB housing market indx Aug 67 68
10:00 Business Inventories (% ) Jun 0.1 0.4

Original Source