Posted To: MBS Commentary
In terms of market movement and new developments, there’s nothing to add to the mid-day update . Bond markets were under mild pressure at the outset, but for every trader interested in buying bonds due to Friday’s weak NFP data, there were 2 other traders who’d already capitalized on that move and who were now looking to sell. We spent a lot of time discussing the 1.84-1.86 inflection zone lately, and in today’s still light volume, it came into play in a big way today. The moment that 1.86 was broken, selling pressure picked up steam in a big way. take a look: Naturally, the weakness translated to MBS in terms of timing, making for widespread negative reprices. Also fairly natural was the fact that MBS escaped with a lesser version of the sell-off (MBS tend to rally less and…(read more)
Via:: MBS RECAP: Widespread Negative Reprices as Bonds Retreat from NFP Gains
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