Posted To: MBS CommentaryThe S&P 500 hit a record intraday high today (just over 2873.22 compared to the previous high of 2872.87). In other words, it wasn’t a triumphant surge. Moreover, it served as a ceiling, with closing levels being nearly 10 points lower. Bonds didn’t pay too much attention, but they definitely took some directional cues from today’s stock movement, which began at the start of the overnight session. By 8:20am, stocks had dragged bonds into moderately weaker territory. The CME open provided a bump in liquidity that helped bonds recover a portion of their overnight losses. But the 9:30am NYSE open took things right back in the other direction, making for the highest yields of the day just after 10am. 10yr yields ended the day up 2.5bps at 2.844 and Fannie 4.0 MBS lost less than…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Michael Ayoub, Author NMLS ID 6631