Posted To: MBS Commentary
Just When You Thought It Wouldn’t Get Much Worse Staggeringly weak day for bonds. 2.0 MBS coupon is now irrelevant. 2.5 is only game in town Lots of general motivations to discuss (watch the video), but the 7yr auction was the only obvious moment for cause & effect Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Jobless Claims 730k vs 838k f’cast, 841k prev Durable Goods 3.4 vs 1.1 f’cast, 1.2 prev GDP (revision, q4) 4.1 vs 4.2 f’cast Market Movement Recap 09:10 AM Modestly weaker in Asia, then significantly weaker in Europe, with 10yr yields rising more than 8bps by the open (high yield = 1.468%). MBS are down 3/8ths after an incredibly illiquid 1st hour. Econ data didn’t have a big impact. This is all bigger-picture momentum/snowball/technical trading. 10:58 AM…(read more)
