Posted To: MBS Commentary
During yesterday’s bond market rout, a lousy reading on domestic data (GDP) effectively did nothing to stem the tide of overnight weakness. Today, the opposite is mostly true . Although bond markets in Europe were weaker overnight, domestic bonds managed to open in flat-to-slightly-positive territory. Economic data was generally stronger this time around, and that was where domestic bond markets found their motivation for the day. 10yr yields are up another 4.4bps to 2.09 and had been as high as 2.11 earlier today. MBS are faring better by comparison with Fannie 3.0s down 7/32nds. This actually leaves them in line with yesterday’s weaker, supportive levels, making for minimal changes in rate sheets. As for the data, the biggest beat of the morning was Jobless Claims coming in at 262k…(read more)
Via:: MBS MID-DAY: Europe Still Pushing Bond Weakness, but Domestic Data Isn’t Helping
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