This recap provides an overview of the market’s movements, focusing on two key events that occurred during this day.
First, the US Treasury sold $26 billion worth of 10-year notes. After the auction concluded, the yield on 10-year notes increased slightly, from 0.620% to 0.621. Bond prices were lower following this auction as investors responded to the higher yields.
Second, Fannie Mae and Freddie Mac each announced their intention to sell $3 billion worth of 30-year mortgage-backed securities (MBS). After this announcement, mortgage rates increased modestly, from 2.95% to 2.98%.
Overall, there was a moderately positive day for MBS, with rates increasing slightly but still staying near historically low levels.
Analysis:
The Mortgage Backed Securities (MBS) market recap for July 20, 2020 provided an overview of the market’s movements. The US Treasury sold $26 billion worth of 10-year notes, leading to a slight increase in the yield on 10-year notes, from 0.620% to 0.621. As a result, bond prices went down as investors responded to the higher yields.
Fannie Mae and Freddie Mac both announced their intention to sell $3 billion worth of 30-year mortgage-backed securities (MBS) as well. Following this announcement, mortgage rates edged up from 2.95% to 2.98%. Despite this slight uptick, mortgage rates remained near historically low levels.
Overall, July 20, 2020 was a moderately positive day for MBS. Rates increased slightly, but remained at attractive levels for buyers looking to lock in favorable rates. This positive outlook for MBS comes as investors remain confident in the housing market despite the economic uncertainty brought on by the global pandemic.
This article was contributed on Aug 10, 2023
