Posted To: MBS Commentary
Bonds Find Footing After Shaky Start This morning we found ourselves in the uncomfortable position of watching the bond market backtrack on massive gains at the end of the previous week. This is always a risk when the market goes on a big run–especially on a Friday. But rather than continue to erase Friday’s gains, bonds found their footing in the 10am hour as a part of a broader “risk-off” move. MBS outperformed both due to a steeper yield curve and a technical rebound after last week’s underperformance. In general, holiday week liquidity is a bigger problem for MBS than Treasuries, so the return of a normal business week is helping as well. In the bigger picture, the jury remains out until omicron-related risks are better understood. Econ Data / Events Fed MBS Buying 10am…(read more)
