Posted To: MBS Commentary
While there have been several economic events in the overnight and domestic sessions that seemingly imparted some momentum, bond markets are better described as simply correcting from yesterday’s rally. The following chart appeared in the morning update on MBS Live. Keep in mind, any of today’s events that are possibly affecting bond markets are all doing so within that tiny range between the teal lines . In other words, forget the data and events . Markets are moving for technical reasons and for positioning. Yesterday saw a low-volume, illiquid snowball rally to the lowest rates in the range and everything since then has been a modest correction. As has been the perennial case, MBS are holding up better than Treasuries today as Treasuries rallied harder than MBS yesterday. Fannie…(read more)
Via:: MBS MID-DAY: Grinding Sideways to Slightly Weaker With Little Regard for Events
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