Posted To: MBS Commentary
Yesterday’s morning headline asked if the recent move was weak enough that we should expect a bounce or so weak that it suggested further selling. Interestingly enough, we saw both sides of that coin yesterday as bond markets continued to sell-off aggressively during the morning only to rally back to unchanged levels in the afternoon. There are a few caveats though. The first caveat is that yesterday was the last day of the month. As such, it benefited from month-end tradeflows, and those clearly played a big role this time around. We have to wonder whether or not we would have seen such a heroic push back if not for the month-end factor. To add caveat-based insult to caveat-based injury , we can also simply observe that the afternoon rally clearly hit a wall before breaking the morning’s…(read more)
Via:: MBS Day Ahead: First Day of the Rest of the Year
