Posted To: MBS Commentary
Today’s 10yr auction was pretty good , although it required a bit of weakness leading up to it in order to generate the relatively strong result. The overall level of demand was right in line with recent averages, and at yields that were just a bit lower than what traders were prepared for. But again, that “preparation” was evident in the Treasury-specific weakness this morning. This is especially noticeable from 11am as MBS held sideways while 10yr yields rose 2bps. They’ve gained back about 1.5 of those so far–nearly unchanged day-over-day. Same as it ever was, the most profound outperformance has been in European bond markets. German Bunds haven’t even been gaining as much as other countries, but they have a more direct correlation with US Treasuries traditionally…(read more)
Via:: MBS MID-DAY: Back to Positive Territory After Decent 10yr Auction
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