Posted To: MBS Commentary
Today went off without a hitch for bond markets. A rally in European debt overnight (strong German bond auction) helped Treasuries and MBS start the domestic session in positive territory. The massive reversal in yesterday’s month-end “steepening” trades was also clearly evident. In other words, bonds with longer maturities were in more favor today as the month-end trading positions that favored shorter maturities no longer needed to be defended. As expected, the biggest mover of the day was the economic data. Here again, an absence of month/quarter end trading considerations combine with the fact that today’s reports provide relevant insight to Friday’s jobs report meant that this morning’s data stood a good chance to set the tone. Indeed it did, and in a great way…(read more)
Via:: MBS RECAP: Big Gains Almost Exclusively Due to Data Implications
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