Posted To: MBS Commentary
What is a dip-buyer? That’s just a fancy term for an investor who has seen prices fall far enough to entice them to buy in the hopes of a bounce. It’s like catching the proverbial falling knife. Sometimes it works out. Sometimes it doesn’t. Today it didn’t. There was longer term dip-buying taking place over the last few days with 2.15% seen as a supportive level in 10yr yields. Those buyers were quickly forced to liquidate after this morning’s thunderous 295k print on NFP. The lack of more meaningful wage growth was completely overshadowed by the job creation. In general, the report seemed to catch market participants off guard. There was a lot of media hype about the weather taking a toll on today’s numbers. Obviously, it didn’t. After the first troop of dip-buyers…(read more)
Via:: MBS MID-DAY: Jobs Report Crushes Bond Market’s Spirit; Pain Trade For Dip-Buyers
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