One of The 5 Worst Days in Over a Decade

At one point today, bonds had lost more ground than any other day in nearly 20 years with the exception of one day during the extreme March 2020 volatility.  By the end of the day, it is “only” one of the 5 worst days in over a decade.  Lucky us? 

Econ Data / Events

Fed MBS Buying  10am, 11:30am, 1pm

Market Movement Recap

08:34 AM sharply weaker overnight as global markets react to Friday’s CPI data.  10yr up 8.5bps at 3.248.  MBS down nearly 3/4 of a point in 4.0 coupons.

02:05 PM Additional deterioration throughout the day, now basically at the weakest levels with MBS down over a point and 10yr yields up 18.2bps at 3.346.  No new market movers at any point in the day.  Everything is momentum, stop-loss triggers, and capitulation. 

03:44 PM Late day WSJ article suggesting possibility of 75bp hike on Wednesday caused another shockwave in bonds.  It’s mostly been recovered, but not entirely.  MBS are down roughly 1.5 points and 10yr yields are up over 22bps at 3.389.
Source: Mortgage News Daily