Bonds recover fully from morning war-headline selloff, UMBS 5.0 turns positive on the day

Bonds opened lower on Iran peace-deal concerns but recovered steadily through the session. UMBS 5.0 reached 97.55 by early afternoon, a full 42-basis-point swing from the morning low of 97.13. The MBA weekly survey showed the 30-year fixed at a nine-month high, reflecting last week's rate environment rather than today's improvement. April housing starts came in below prior levels, but the data generated minimal market reaction — geopolitical headlines remain the primary driver.