Posted To: MBS Commentary
Glimmer of Hope in Bonds, But It Might Be a Trap Bonds started the day in roughly unchanged territory and promptly began tanking. This was a bigger deal for MBS than Treasuries as the latter managed to stay UNDER yesterday’s intraday high yields. Heavy losses in stocks at the NYSE open helped bonds a bit, but weakness returned ahead of Powell’s congressional testimony. As Powell spoke, yields healed and bonds eventually turned green. This makes for a promising technical cue as far as charts are concerned, but for reasons discussed in today’s video, it might make sense to wait for just a bit more convincing before shifting your lock/float approach in this market. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Case Shiller Home Prices (y/y) 10.1 vs 9.9 f’cast, 9.2 prev FHFA…(read more)
