Posted To: MBS Commentary
Decent Day Despite Lukewarm Treasury Auction. Dovish Fed Helps This morning’s weaker Durable Goods data had no effect on trading levels. At the time, bonds were in the process of moving up in yield after a decent little overnight rally, and the selling pressure continued until 9:30am. After drifting sideways for a few hours, a tepid 5yr Treasury auction failed to spook bond traders. Tentative gains followed with help from fairly dovish Fed speakers and mild slump in stocks. All told, another good day in building a case for support, but still not enough to rest easy. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Durable Goods -1.1 vs 0.8 f’cast, 3.5 prev Core Cap-Ex -0.8 vs 0.5 f’cast, 0.6 prev Market Movement Recap 08:21 AM Bonds opened stronger in Asia and rallied heading…(read more)
