Posted To: MBS Commentary
‘Unchanged’ Feels Like a Victory Bonds began the day at the highest yields in more than a year and slowly worked their way back to ‘unchanged.’ Solid justification for the move (in either direction) was elusive. Traders are talking in generalities with topics such as corporate bond issuance and fiscal policy frequently mentioned. European markets were also a factor for bond weakness late in the overnight session and strength in the afternoon. We’re left with a reminder that the big picture rising rate trend can’t be easily ruled out, and mortgage rate sheets that are still showing battle scars despite positive reprices and MBS prices near unchanged levels. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Consumer Confidence 109.7 vs 96.9 f’cast, 90.4 prev Inflation…(read more)
