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MBS rose as 10-year futures volumes spiked to 3.8 million contracts

Mortgage-backed securities gained about 2 ticks, while the 10-year yield fell 1.9 basis points to 5.093% as trading volume jumped well above recent norms.

Reported · Written up by our desk · Mortgages

Mortgage News Daily reports that mortgage-backed securities moved higher despite an early promise of resilience, with bonds bouncing higher after around 10am even as oil prices rose.

The outlet said the sharp move appeared driven by fast, heavy selling by traders, highlighted by a “staggering” increase in volume and average volume per minute in 10-year futures.

Mortgage News Daily cited activity of roughly 3.8 million 10-year futures contracts, compared with about 2.8 million on the prior Friday, noting that recent monthly trading has largely been in the 1 million to 2 million range.

By the time of the update, the outlet said MBS were up about 2 ticks, and the 10-year yield was down 1.9 basis points to 5.093%.

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