Domestic Events Mostly Overshadowed by European Influence

While we can trace some of this morning’s back and forth market movement to domestic economic data (Chicago PMI helped, JOLTS hurt), it was the European market hand-off that set the tone for today’s US rate rally.  The only major contribution from a domestic standpoint would be several Fed speakers hitting the wires talking about “skipping” the next rate hike at the upcoming meeting.

Econ Data / Events

Chicago PMI

40.4 vs 47.3 c’cast, 48.6 prev

Job Openings

10.1m vs 9.2m f’cast, 9.6m prev

Market Movement Recap

08:53 AM decently stronger overnight, but losing ground since 8:20am.  MBS still up 1 tick (0.03) in 5.5 coupons and 5 ticks (.16) in 5.0 coupons.  10yr down 2bps at 3.673.

11:37 AM Some back and forth surrounding AM econ data.  10yr down 4bps at 3.654.  MBS up a quarter point.

03:03 PM Additional gains in the PM hours.  10yr down 5.3bps at 3.641 and MBS up 3/8ths of a point.

03:53 PM Best levels of the day with 10yr down 7.8bps at MBS up half a point.
Source: Mortgage News Daily