Posted To: MBS Commentary
Decent Day For Bonds as Stocks Sell A good, old-fashioned “risk-off” rally has been hard to come by in 2021, but that’s arguably what we saw today. Whether investors were shedding stocks due to broad economic/pandemic risks, corporate earnings, or some other reason, the net effect seems to have been for some of that cash to find its way into the bond market. Like the rally last Thursday, today’s gains were driven, at least in part, by short-covering. As such, we shouldn’t jump to conclusions about a sustained rally just yet. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:36 AM Weaker at first then stronger in the overnight session. Net effect: roughly unchanged to start with 10yr yields at 1.603% and 2.5 coupons up 1 tick (+0.03). 10:32 AM…(read more)
