Posted To: MBS Commentary
Today could be the day. If markets were to close right now, it would be the first day in 2021 where bonds could say they’d rallied 4 days in a row or 4 days in a week. Strikingly, it would also be the first Thursday in 2021 where yields moved lower. While we continue to expect the 7yr Treasury auction to have more market movement potential than normal, there could be other factors in play that help drive momentum. Of particular interest during the last 5 trading days of March are the various month/quarter-end portfolio rebalancing needs of the mega funds out there. There have been several news stories recently touting 10s of billions of dollars of buying needs among asset managers. Clearly, if it’s obvious enough for such articles to be written, the more tactical portion of the trading…(read more)
