Posted To: MBS Commentary

Uneventful Start This Week; Next Move Remains Debatable Bonds began the day in weaker territory but rallied back to nearly unchanged levels after several comments from inbound Treasury Secretary Janet Yellen. Of particular note were Yellen’s comments on the possibility of repealing certain tax cuts as well as the need to get the federal budget on a more sustainable path. Both of those bode well (or “better,” anyway) for Treasury issuance vs demand. The econ calendar was silent and other market moving headlines were scarce. Traders are waiting for the next major cue that settles the debate between keeping the broader negative trend intact or riding the recent positive correction back to lower-yield technical boundaries. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am…(read more)

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Published On: January 19, 2021 / Categories: Mortgage News /