Posted To: MBS Commentary
Big Nasty Sell-Off Sends a Message About The Range Steady selling in the morning followed by heavy selling after the catastrophically bad 30yr bond auction. While trading levels managed to recover from their weakest levels, significant weakness remains–especially in MBS which are more in tune with the belly of the yield curve (and that’s the worst performer in the Treasury complex). Taken together with yesterday’s weak 10yr auction, and we’re left with the impression that bonds have spoken up to define the lower boundary of the current trading range. Econ Data / Events Fed MBS Buying 10am & 1130am Core Annual CPI 4.6 vs 4.3 f’cast, 4.0 prev Market Movement Recap 08:38 AM Weaker overnight with additional losses after hotter CPI data. 10yr up 4.6bps at 1.483 and 2.5 UMBS…(read more)
