Posted To: MBS Commentary
Domestic bond markets began the day in stronger territory, and you can tell they’re not too happy about it. If Treasuries and MBS had their way, they’d still be holding in the same pre-FOMC range marked by a low of 2.04% in 10yr yields. Considering 10’s only made it down to 2.014, they haven’t exactly been unsettled. It’s not for lack of trying though! Europe had a wild night that continued into the domestic session. Germany had a 10yr auction that can only be described as epic . It had a record low yield and nearly a record high level of demand (highest in 13 years). Other events included central bank headlines in England and Sweden, ECB bond buying, and some modest Greek Drama. All of them conspired to fuel a strong rally in core European bond markets–something that would…(read more)
Via:: MBS MID-DAY: Strong Morning for Bonds Thanks to Europe; Cue FOMC Anxiety
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