Snowball Sell-Off to Start The Month Sometimes headlines reference the beginning or end of any given day/week/month just to fill space. On days like today, however, it's a relevant contributor to the selling pressure.  Today's "new month" selling is attributable to investors closing out temporary positions held for last week's "month end."  That was only part of today's drama though.  It was exacerbated by a glut of corporate bond issuance as well as the bailout of First Republic.  Econ Data / EventsISM Manufacturing47.1 vs 46.8 f'cast, 46.3 prev ISM Mfg Prices Paid53.2 vs 49.0 f'cast, 49.2 prev Market Movement Recap09:17 AM bonds sold off on FRC bailout, but have bounce back a bit.  10yr up 4bps on the day at 3.473.  MBS down 6 ticks (.19). 10:18 AM Additional weakness on ISM data.  MBS down 3/8ths on the day.  10yr up 8.6bps at 3.518. 12:56 PM weakest levels of the day with 10yr yields up 12.2bps at 3.555.  MBS down almost half a point. 04:11 PM Snowball selling up until 3:40pm ET.  Small bounce since then.  MBS still down over half a point.  10yr up 15.4bps at 3.587
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May 1, 2023
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MBS Commentary
Snowball Sell-Off to Start The Month Sometimes headlines reference the beginning or end of any given day/week/month just to fill space. On days like today, however, it's a relevant contributor to the selling ... (read more)
Mortgage Rate Watch
Whether we call it a bailout, a failure, or a fire sale, First Republic Bank was formally absorbed by JP Morgan Chase early this morning. Interest rates moved higher in response, and that may be counterintuitive for those who know a thing or two abou... (read more)
Rob Chrisman
Did you know that cows snooze laying down for the four hours of sleep they need a day? Did you know that horses sleep standing up? These tidbits may come in handy for me this week as I head to Cody, Wyoming for the WMLA annual conference. Or they may... (read more)
Mortgage Rates
MBS / Treasuries