Posted To: MBS Commentary
Moderate Weakness; Decent Treasury Auction 7yr Treasury auctions haven’t been great for the bond market in 2021, generally speaking. Today’s was an exception although it didn’t necessarily provide a huge boost. Yields were at the highs of the day, up more than 4bps at 1.625% just before the auction, but eased back under 1.61% after that. The day’s entire trading range was roughly 2bps (1.605-1.625) during the domestic hours. This weakness is consistent with a technical bounce at 1.56% that began to take shape on Wednesday. MBS underperformed at times but stabilized in the last 2 hours of the day. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Durable Goods -1.3 vs +0.7 f’cast Excluding defense/aircraft +2.3 vs 0.8 Jobless Claims 406 vs 425, 478 prev Pending Home Sales…(read more)
