Posted To: MBS Commentary
Forget the ECB; Taxes Saved Bonds Today First off, bonds didn’t really need “saving.” They were only modestly weaker to start the day and didn’t lose too much more ground from there. The first rally arrived after ECB Pres Lagarde finished her press conference, but it didn’t last long. Yields were at their highest levels just after 1pm when the latest iteration of 39% capital gains tax news made the rounds. Stocks and bond yields instantly moved lower in unison with the 10yr almost getting back to intraday lows of 1.53%. MBS are going out near their highs of the day with 2.0 and 2.5 coupons both up 2 to 3 ticks (0.06-0.09). Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Jobless Claims 547k vs 617k f’cast, 586k prev Existing Home Sales 6.01 vs 6.19 f’cast, 6…(read more)
