Posted To: MBS Commentary

Awesome Bounce Back But Still a Cautionary Tale Bonds started the day quite a bit weaker after several pieces of EU econ data came in much stronger than expected. GDP had no impact, but yields spiked shortly thereafter as one gigantic seller hit the Treasury complex, prompting copycat trades. A slump in stocks may or may not have helped bonds find their footing. Either way, yields drifted lower throughout the afternoon, ultimately hitting the 3pm close less than 3bps higher on the day after being more than 8bps higher this morning. MBS outperformed, and are currently + 2 ticks (+0.06) with just over an hour to go. That’s a stellar recovery, but with yields ending the day higher, this week’s underlying message remains cautionary. Treasuries were in a rally trend all month and this week…(read more)

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Published On: April 29, 2021 / Categories: Mortgage News /