Posted To: MBS Commentary
Treasuries Slide Sideways as MBS Outperform The most notable development today was the outperformance on the part of MBS. The most obvious culprit would be the looming Treasury auction cycle logically causing more anxiety for Treasuries. There’s also the distinct steepening of the yield curve, which tends to favor MBS when it’s happening in moderation. Additional factors are discussed in today’s video, but ultimately don’t really have a bearing on the bigger picture. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Existing Home Sales 5.99m vs 5.83m f’cast, 5.87m prev Markit Composite PMI 55.4 vs 58.3 f’cast, 59.9 prev Market Movement Recap 08:55 AM Slightly weaker overnight in light volume. 10yr up 1.3 bps at 1.27% and UMBS down 2 ticks (0.06). 01:20 PM Modestly…(read more)
