MBS MARKET COMMENTARY
MCT’s Director of Analytics, Bill Berliner, writes a weekly summary of movements in the secondary market. The analysis includes an in-depth view of treasury yields, mortgage backed securities, note rates and more.
View the MBS Market Profile Descriptions and Definitions for a detailed explanation of the weekly report then join our newsletter to receive the MBS weekly market commentary in your inbox every Monday.
Treasury yields did not change much last week, despite some volatility that briefly took the 10-year yield to 2.15% before closing at 2.08%. The yield curve configuration was also little changed, with the 2-10 year spread moving out by about ½ basis point while 2-5s inverted by a basis point and the 5-30 spread widened by about 3 bps. The TIPS (inflation-protected) break-even rates, which serve as proxies for expected inflation, declined noticeably last week, with the 5-year break-even contracting by 14 basis points despite a slight uptick in the CPI.read more
Treasury yields continued to push lower last week, with the 10-year yield ending the week at 2.083% after renewed concerns over trade spats and a weak Employment report.read more
A lot has changed since our last update in mid-May. The 10-year Treasury yield closed on Friday at 2.125%, 27 basis points lower than its close on 5/17 and more than 110 bps lower than at the cycle highs in early November. View MBS Weekly Market Profile Report *The...read more
Treasuries rallied last week as the U.S.-China relationship deteriorated amid a breakdown in trade talks. The 10-year Treasury closed just over the 2.45% level, with the rest of the curve (except the 30-year bond) moving pretty much in concert.read more
Treasury yields moderated a bit at the end of a week punctuated by a Fed meeting and the April employment report. The 10-year yield ended the week at 2.526%, just under 3 basis points higher than where it closed on April 26th. View MBS Weekly Market Profile Report...read more
Treasury yields moved in a narrow band last week, with intermediates maturities lagging both the short and long end of the curve. The reshuffling of the curve left the 2-5 spread inverted by less than a basis point, while the 2-10 year spread moved wider by roughly 4 basis points.read more
Treasury yields moved in a narrow band last week, with intermediates maturities lagging both the short and long end of the curve. The reshuffling of the curve left the 2-5 spread inverted by less than a basis point, while the 2-10 year spread moved wider by roughly 4...read more
Treasury yields ended the week higher, although the 10-year yield managed to close below 2.50%. The yield curve maintained its conspicuous “bowed” shape, with yields on the 3- and 5-year notes below that of the 2-year, leaving the 2-5yr spread slight inverted (-3.5 basis points) while the 2-5-10 butterfly decreased by another 2.5 bps to end at -22.5 bps.read more
Treasury yields declined on the week, leaving the 10-year yield at its lowest level since December 2017. The belly of the curve underperformed, as the 2-year note and 30-year bond both had the best weekly performance.read more
Last week’s Federal Reserve Open Market Committee (OMC) meeting caused a huge shift in bond market sentiment, pushing Treasury note and bond yields sharply lower while leaving money market rates (i.e., maturities less than one year) virtually unchanged.read more