Posted To: MBS Commentary
The overnight session was predictably uneventful with most of the world still out of the office for the Easter holiday. Plenty of market participants are out for Passover as well. So even though domestic markets are fully open today, volume and participation are lacking. One risk associated with that phenomenon is that it greases the skids for volatility by magnifying imbalances. That’s happening today, and it’s not going well for bond markets. 10yr Treasuries had fully erased Friday’s gains by noon today. MBS weren’t far behind. Most lenders have repriced negatively, and many weren’t priced any better this morning than Friday or Wednesday of last week. Understanding the weakness is as easy as going back to our discussions from last week before NFP. The general theme of…(read more)
Via:: MBS MID-DAY: Friday’s Gains Fully Erased in Treasuries; MBS Getting Close
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