Mortgage bond prices are
getting hit hard this morning as investors prepare for a series of Fed
speakers that some expect to deliver hawkish views on the future of
interest rates. MBS is down -22 bps this morning as the 10-year benchmark
yield has climbed to 2.35%.
The economic calendar is playing second fiddle to the Fed speeches today
but nonetheless factory orders that came out this morning showed capital
goods orders rose slightly more than expected, adding to market sentiment
that the economy is in very strong condition and the time for hiking
rates more aggressively is nearing.
Rate Sheet Impact: Worsening heading into the afternoon.