Posted To: MBS Commentary
Bonds Look Past Weaker Treasury Auction Treasury auction have been more important than normal so far in 2021 as they serve as good opportunities for traders to vote on the pace of rising rates. Most recently, they’ve been a litmus test for break from uptrend. While we can’t really expect a strong endorsement of a massive bond rally, merely holding under certain ceilings is victory enough. Today’s relatively calm reaction to a fairly weak 10yr auction continues the recent tradition of bonds NOT freaking out every chance they get. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 09:44 AM Bonds were unchanged overnight with gains in Asia and weakness in Europe. That weakness has continued at a slow and steady pace as the domestic session gets underway. 10yr…(read more)
