Data-Driven Repricing Continues

There are two kinds of “repricing” to consider when you’re a mortgage market professional: the intraday change in rates among lenders when market move enough and the broader bond market shifting gears in response to some relatively rapid realization.  Today’s trading session spoke more to the latter, adding emphasis to a repricing that’s been underway for the entire month of April.  If there’s one culprit, it’s economic data.  The jobs report and CPI are the two obvious all stars, but today’s Retail Sales report made a strong case to be on the starting line up.  

Econ Data / Events

Retail Sales

.07 vs 0.3 f’cast
last month revised up to 0.9 from 0.6

NY Fed Manufacturing

-14.3 vs -9.0 f’cast, -20.9 prev

Market Movement Recap

08:37 AM Moderately weaker overnight with additional selling after Retail Sales data.  MBS down 10 ticks (.31) and 10yr up 8.4bps at 4.614

10:49 AM Additional weakness after several block trades and geopolitical headlines.  10yr up 10bps at 4.627.  MBS down almost half a point.

12:37 PM Sideways to slightly stronger since hitting the weakest levels earlier.  MBS down 3/8ths.  10yr at 4.630, off highs of 4.66+

03:27 PM Still flat at weaker levels.  MBS down 14 ticks (.44) and 10yr at 4.627.