Posted To: MBS Commentary
MBS Outperform, But Bonds Fail To Confirm The Bounce Tuesday’s gains increased odds that a friendly bounce was in the works, but overnight and AM weakness put an end to the optimism. Frustratingly, there weren’t any great scapegoats. Data was weaker and none of the potential headline motivations were compelling. If there’s some small solace, it’s that MBS outperformed rather noticeably, but that really does nothing to alter the broader bond market trend (namely: consolidation in a wide sideways range at the highest yields in a year). Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm ADP Employment 117k vs 177k f’cast, 195k prev. ISM Services PMI 55.3 vs 58.7 f’cast ‘Prices Paid’ highest since 2008 Market Movement Recap 08:31 AM Bonds were initially mostly flat…(read more)
