Posted To: MBS Commentary
Treasuries and MBS are at the weakest levels in exactly a month and a half. The time frame preceding the March FOMC Announcement saw markedly weaker levels though the important support came in around 2.14–just a bit higher than today’s 2.121 high in 10yr yields. To make matters worse, today’s losses followed a WEAKER reading on ISM Manufacturing. That’s exactly what we didn’t want to see . It speaks to a trading community that is determined to sell and simply looking to avoid major barriers to those goals. It’s not uncommon for traders to wait to sell until significant data passes in order to be sure it doesn’t come in so much weaker than expected that it causes an unavoidable rally. Today’s data apparently wasn’t weak enough for that. If anything, it’s…(read more)
Via:: MBS MID-DAY: A Real Mayday For Bond Markets?
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