Posted To: MBS Commentary
Respectable Recovery After Morning Drama “Drama” may be a bit of an overstatement, but bonds were weak enough this morning to cause some concern about the week’s prevailing message (i.e. that the 2021 uptrend in rates is strongly considering taking the month off in April). As the day progressed, yields inched back toward lower levels. While Treasuries ultimately failed to make it back to positive territory, MBS succeeded. The outperformance can be attributed to light MBS supply over the past 2 days as well as Treasury-specific headwinds (such as next week’s condensed auction cycle). Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Core Producer Prices (y/y) 3.1 vs 2.7 f’cast, 2.5 prev Market Movement Recap 08:44 AM Much weaker overnight in an apparent confirmation of…(read more)
