Tame Inflation and Tillerson Usher Bonds to Week’s Greatest Ranges

Bond markets moved to their finest ranges in additional than every week on a mix of tame inflation information and Trump’s surprising announcement of Rex Tillerson’s departure from the White Home.  

In wanting on the inflation information, we might make a case for bonds two methods.  First, at this time’s Shopper Worth Index (CPI) was not stronger than anticipated on any line merchandise except you need to say that final month’s -Zero.eight% change in inflation-adjusted earnings was revised to -Zero.6.  Second, and maybe extra importantly, the un-rounded variety of Zero.0151% practically made for a headline of “Zero.1% vs Zero.2% forecast.”  

“Almost” wasn’t value too terribly a lot for bond markets, as they did not rally profoundly proper out of the gate.  We won’t actually know the way a lot of a rally we’d have seen, nonetheless, as a result of Tillerson’s ouster hit the newswires only a few minutes later.  Markets traded that in “risk-off” style (promote shares, purchase bonds).  

The beneficial properties have been short-lived as buyers pushed again on the bottom 10yr yields since March fifth.  On the plus aspect, the weak point by no means gained an excessive amount of momentum, and bonds obtained one other shot following a good 30yr bond public sale within the afternoon.  The public sale motivated some extra curve flattening trades (promote 2yr bonds vs purchase/maintain 10-30yr bonds), however simply as related was the inventory market weak point that elevated into the shut (extra “risk-off” assist for bonds).

MBS Pricing Snapshot

Pricing proven beneath is delayed, please word the timestamp on the backside. Real time pricing is out there through MBS Reside.


FNMA three.5

99-24 : +Zero-02


10 YR

2.8444 : -Zero.0256

Pricing as of three/13/18 four:55PMEST

Immediately’s Reprice Alerts and Updates

1:12PM  :  Combined Bag 30yr Public sale; Restricted Response so Far

10:17AM  :  ALERT ISSUED: Destructive Reprice Danger Growing

eight:59AM  :  Tillerson Ouster Boosts Bonds Quickly

eight:36AM  :  CPI Largely As-Anticipated; Bonds Nonetheless Making an attempt to React

MBS Reside Chat Highlights

Matthew Graham  :  “B”

Matthew Graham  :  “RTRS – U.S. 29-YEAR 11-MONTH BOND BID-TO-COVER RATIO 2.38, NON-COMP BIDS $four.43 MLN”

Matthew Graham  :  “RTRS – U.S. SELLS $13 BLN 29-YEAR 11-MONTH BONDS AT HIGH YIELD three.109 PCT, AWARDS 38.47 PCT OF BIDS AT HIGH”

Brent Borcherding  :  “Missile Launch”

aaron meyer  :  “JT what can get us beneath 2.79?”

John Tassios  :  “professor MG, i am searching for one other “A” grade at this time at 1:00″

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