MBS Highway Daily Updates 01/13/2023
Current position: Locking
After rallying yesterday on the heels of lower inflation data, stocks and Mortgage Bonds are both lower this morning, giving back some of those gains.
The inversion between the 10 - year Treasury Note Yield and 3 - month Treasury is almost 120bp, a sure tell sign of a recession.
Monday: Market Closed for MLK
Tuesday: No News
Wednesday: Mortgage Applications, Producer Price Index, Retail Sales, NAHB Housing Market
Index, 20 - Year Auction
Thursday: Housing Starts and Permits, Initial Jobless Claims
Friday: Existing Home Sales
Mortgage Bonds have started the day lower after failing to break above the strong ceiling at the 101.671 Fibonacci level. MBS haven't been able to break above this level since September, and after the great two day move we've seen, Bonds may give up some of these gains. The 10 - Year ran into a strong floor at the 3.431% Fibonacci Level but were rejected higher.
With both MBS and the 10-year stuck between a rock and a hard place, start today with a locking bias.