Bonds Rally on Peace Deal Hopes

Bonds Rally on Peace Deal Hopes The day ended as it began: with bond yields and oil prices dropping in unison based on hopeful headlines surrounding the Iran war. Perhaps the market was in the mood for a rally because the headlines weren't particularly specific or compelling. Oil prices are closer to the middle of their range for the month of August whereas 10yr yields are closer to the low end of the range. This could suggest a bit of a willingness to rally on the part of the bond market, but sustaining the rally would require continued cooperation from oil as well as econ data. Econ Data / Events Case Shiller Home Prices-20 y/y (Jun) 2.1% vs 1.7% f'cast, 1.6% prev CaseShiller 20 mm nsa (Jun) 0.4% vs -- f'cast, 0.9% prev FHFA Home Price Index m/m (Jun) 0.0% vs 0.2% f'cast, 0.3% prev FHFA Home Prices y/y (Jun) 2.3% vs -- f'cast, 2.2% prev Market Movement Recap 09:32 AM MBS up a quarter point and 10yr down 3.9bps at 4.659 01:40 PM MBS up 10 ticks (.31) and 10yr down 5.5bps at 4.642 03:49 PM MBS up 3/8ths and 10yr down 6.5bps at 4.632