Posted To: MBS Commentary
Last week was volatile for bonds with trepidation heading into (and out of) the Fed Announcement. A surprisingly strong reversal on Thu/Fri brought yields near their lowest levels since March. As far as overnight trading is concerned, we may have found our limit for now in terms of “surprisingly strong” moves. The week is starting out with the 1.47% ceiling giving way in 10yr yields and MBS off a quarter of a point. This could all be a logical part of a broadly sideways set-up for next week’s pre-holiday weekend jobs report on Friday. Weakness aside, trading levels are strong in relation to the past few months. In the week ahead, we hope to see bonds make a decision to either forge ahead toward counterintuitive lows or to retreat safely to the confines of the previous range. It…(read more)
