Posted To: MBS Commentary
Another Green Day, But Can We Trust It? Bonds were briefly weaker mid-morning, but rallied back to close at slightly stronger levels. We’ve been defensive about the upward trend in rates for more than a month now and generally on the lookout for enough of a rally to let our guard down a bit. With the past 3 business days seeing anywhere from modest to moderate improvements, is it time to conclude we’ve seen the worst of the recent drama? In a word: no. Bonds have a lot more ground to cover before we’d think about that as something more than just another possibility. Even then, we’re expecting a fair amount of volatility surrounding next week’s Fed announcement. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Case Shiller Home Prices m/m 1.2% FHFA Home Prices m/m 1.0…(read more)
