Posted To: MBS Commentary
Up until this morning’s Durable Goods data, bonds looked ready to go either way. MBS and Treasuries were slightly weaker, somewhere around halfway back to yesterday’s weakest levels. An exceptionally strong showing in the econ data may well have resulted in a test of those weak points. Instead, the data was fairly poor overall. Cars, Planes, and defense spending buoyed the headline, but by the time those volatile, big-ticket items were factored out, the business spending outlook was not so hot . In addition, last month’s numbers were revised significantly lower. Bonds rallied as a result. The trading that occurred overnight, leading up to the report ends up looking like a temporary departure from a 2-day trend that stayed positive for bonds through the noon hour today. It’s…(read more)
Via:: MBS RECAP: Bonds Continue Reinforcing The Range Ahead of Fed Week
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