Posted To: MBS Commentary
There was a better chance that bond markets would react to today’s Retail Sales data despite the lack of reaction to the last reading ( reasons discussed here ). Not only did we get a reaction today, but it was so big that it didn’t even make sense. It’s not that Retail Sales data isn’t capable of moving 10yr yields 6bps or MBS by three eighths of a point. It’s just that we wouldn’t expect to see that kind of reaction when the headline is only 0.1 away from the forecast (+0.9 actual vs +1.0 forecast, in today’s case). Even though some of the internal components were a bit weaker, they weren’t nearly weak enough to account for the ensuring bond market gains. Here is the list of additional players discussed in morning update on MBS Live: The first and best consideration…(read more)
Via:: MBS MID-DAY: Holding Seemingly Outsized Gains After Retail Sales Data
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