Posted To: MBS Commentary
Stocks, oil, Euros, and other assets that bespeak growth and risk are weaker today while bond markets are stronger. The opposite was initially the case overnight (except in the case of oil), but as domestic trading picked up for the day, bond markets bounced and stocks began selling off. The stock sell-off kicked into higher gear at the 9:30am cash open, but that only translated to minor additional strength in bond markets. There hasn’t been any significant data and participation levels are somewhat lower than last week’s average. A few points of order: – This week’s auction cycle begins a day early with 3yr notes this afternoon at 1pm. 3’s typically don’t produce much of a reaction. – Tonight is “the roll” for Fannie and Freddie 30yr MBS. That means January coupons…(read more)
Via:: MBS MID-DAY: Bond Markets Holding Modest Gains, Fueled by Weakness Elsewhere
