Posted To: MBS Commentary
You may have the market aphorism that it’s easier to ride waves than to swim against them. The post-ECB bond market wave is still in force today with all corners of the bond market gaining ground, but especially the longer end of the yield curve. That, in turn, provides some benefit for MBS with Fannie 3.0s up more than a quarter of a point. The most refreshing thing about today is the lack of volatility during the domestic session. 10yr yields have held under 1.85 and above 1.80– not too shabby considering the circumstances. Volume is much lower and markets are generally looking tired, but happy after doing a pretty great job of front-running yesterday’s ECB announcement over the past few months. The caveat about ‘riding the wave’ is that we’re not getting any new information…(read more)