Bonds Weaken Despite Oil Recovery — Yields at 3-Week High

Mortgage-backed securities opened Monday down roughly a quarter point as bonds sold off despite oil prices recovering from an early spike tied to reports of Iranian missiles hitting a U.S. warship — reports that were quickly denied. Bonds broke their usual correlation with oil at 9:20am, continuing to weaken into the NYSE open. The 10-year Treasury rose to 4.42%, its highest since March 27th. 30-year UMBS 5.0 is trading at 98.41, down 0.29 on the day.